AIX Presents its Results for 1H2024

09 July 2024

Astana International Exchange (“AIX”, “Exchange”) is pleased to present its results for the first six months of 2024.

In the first half of 2024, AIX re-established itself as one of the fastest-growing exchanges in the region and frontier space with a breakthrough in every aspect of the business, including trading value, number of listings, and new members.

Assel Mukazhanova, CEO of the AIX, noted:

Over the past five years since our inception, we have been positioning ourselves more like a start-up. With the expansion of our business and upcoming new projects, we can now confidently claim that AIX has evolved from the development phase to become a young, ambitious, and promising financial services company. Despite regional uncertainties and changing market environment, we are optimistic about continuing to excel and we are committed to contribute to further develop the Kazakhstani market.

AIX results as of 30 June 2024:

  • The trading turnover in 1H2024 surged to almost $707 mln, a fivefold increase compared to $140 mln in 1H2023. The trading activity for the entire 2023 amounted to $582 mln.
  • The official AIX list includes 184 securities offered by 111 issuers. Forty-four securities have been listed in 1H2024, including foreign issuers’ bonds.
  • Debt capital raised since inception amounted to about $4.5 bn; equity capital reached $471 mln.
  • There are currently 57 participants in the AIX and AIX CSD; 27 of them are foreign companies from various European countries, Arab states, Armenia, and China. 10 new brokerage companies and custodians joined AIX and AIX CSD in 2024. Three new Market-Makers were appointed.
  • More than 1,75 mln Kazakhstani citizens hold investment accounts in the AIX Central Securities Depository (AIX CSD). Ten Global Custodians hold sub-accounts at the AIX CSD.

The first cross-exchange trading via Tabadul Hub

In April 2024, AIX officially joined the Tabadul Digital Exchange Hub established by the Abu Dhabi Securities Exchange (ADX), allowing for bilateral cross-Exchange trading between the two entities. This collaboration enhances liquidity and streamlines trading mechanisms for investors by making AIX and ADX-listed securities available for cross-trading. Tabadul facilitates remote access for brokerage firms affiliated with the participating exchanges, reinforcing their dedication to fostering stronger relationships and promoting collaboration. Through Tabadul, investment opportunities are expanded across member exchanges regionally and globally.

As of today, Freedom Finance Global and Halyk Finance have been recognized and onboarded as Tabadul Hub brokers from Kazakhstan, while BHM Capital and International Securities (IS) joined AIX as ADX trading members via Tabadul. The first trade by International Securities was successfully settled by the AIX CSD, marking the start of trading via Tabadul.

Current members of the platform include the Abu Dhabi Securities Exchange (ADX), Bahrain Bourse (BHB), and Muscat Stock Exchange (MSX). AIX’s integration into the Tabadul Digital Exchange Hub follows a strategic partnership with ADX, as outlined in their June 2023 Memorandum of Understanding.

Tabys App offered first bonds to its clients via an exclusive book-building

Tabys App, the AIX mobile application has successfully introduced a new instrument for its users by expanding its product line to include debt instruments. Solva Group Ltd., one of the largest microfinance institutions, has issued Bonds offered to the Tabys investors community for the first time. Within two weeks, over 600 bids were submitted by retail investors via Tabys. The total nominal issue volume of two-year bonds on the AIX exchange amounted to $15,000,000.

Tabys App is a mobile application for novice investors launched by the Astana International Exchange in 2020. The project aims to increase financial and investment literacy among the Kazakhstani people. Over the years, more than $17 million has been traded in the application, and during the IPO/SPO, more than 12,000 applications worth 1,8 billion tenge were collected.

The corporate debt market demonstrates unprecedented growth

The debt volume traded on the AIX reached a substantial $308 mln marking 3.5x increase over the $86 mln traded in the same period of 2023. Thirty-nine listings out of 44 in 1H2024 are debt instruments. The product line has been expanded with social bonds and structured products, raising a total of $245 mln. Debt issuers also vary, including large private businesses, quasi-governmental organizations, and supranational financial institutions.

The Liquidity Management Program (LMP), introduced by AIX in May 2023, remains one of the most demanded products on the debt segment. The LMP Program was designed to service funding needs within one group of companies enabling such companies to issue debt instruments within just a few days. 4 company groups registered LMP program to date, sized to $6.3 bln.

Block Trades and Conditional Trades were first tested on AIX

The IPO of Air Astana, the largest on Kazakhstan’s stock market to date, let the AIX introduce locally a groundbreaking feature known as conditional trading, making a significant milestone in frontier markets.

This innovation revolutionized Kazakhstan’s stock market landscape by granting local investors the unprecedented opportunity to engage in trading on the domestic exchange before the formal allocation of shares they subscribed to during the IPO. This unique offering encompassed both GDRs and Common Shares with settlements conducted in US dollars, fostering a new level of accessibility and flexibility for investors in the region.

Block trading (also known as negotiated deals) was also introduced and used to exchange large quantities of Air Astana and Solidcore Resources plc. (former Polymetal) shares. A block trade refers to a large order of securities being bought or sold, typically involving a significant number of shares or debt instruments for a substantial amount of money. These transactions are arranged off the central order book, directly between institutional investors, investment banks, or broker-dealers. Block trades are usually conducted to avoid impacting the market price of the security.

There is no obligation for AIX Trading Members to report negotiated deals to AIX. The negotiated deals are carried out in the Order Book and are automatically and immediately deemed to have been reported to AIX via the negotiated deal trade functionality of the AIX Trading Facilities. AIX reports to the marketplace the date and time of the trade, trade symbol of the Securities, trade price per Security, quantity of the Securities (volume), and trade value in a dedicated Negotiated Deal Reporting section of its website at block-trade-reporting on daily basis.

AIX QI Index

AIX’ proprietary index, the AIX Qazaq Index, had a great run with a +10.2% hike year-to-date and an all-time high at 1,367.57 on May 20th. With the successive additions of KEGOC in Q1 and Air Astana in Q2, it now hosts 12 constituents. Exchange Traded Notes linked to the index also saw some pick-up with $60k turnover.

AIX Registrar

The AIX Registrar enjoyed an unprecedented growth of its activities while expanding into new areas. One hundred and forty issuers now hold accounts at the AIX Registrar, which routinely processes proxy voting and other investor services via its online portal. In the first half of 2024, the AIX Registrar started acting as primary registrar for private companies with 2 such companies signing up for the service.

AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, the Shanghai stock exchange, the Silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative.
The Astana International Financial Centre (AIFC) is an independent jurisdiction that started (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy.