Products and Services for Local Business
Customer centricity is one of the major principles AIX is focusing on. Hence, we put all efforts into talking to business owners, getting familiar with of their needs and coming up with varied solutions to meet the requirements expressed by local businesses.
Regional Equity Market Segment
Midsize companies are looking for simpler and cost-effective ways of raising capital, and a regional equity market (REMS) listing provides such opportunity for Kazakhstan businesses.
The Regional Equity Market Segment:
- Understands the various aspects of midsize companies.
- Promotes the development of an ecosystem to raise capital for Kazakhstan SME companies.
- Increases foreign and regional investor interest to ensure a dynamic and more liquid market.
- Reduces the administrative burden and reporting requirements for issuers.
- Provides an alternative to bank lending when it is unavailable or when terms are unfavorable.
- Is less expensive and offers simpler listing and capital raising procedures for issuers.
- Makes investing in the AIFC jurisdiction, which protects investor interests according to international standards and practices, far more convenient.
Liquidity management programme
The Programme is designed to service funding needs within one Group of companies by enabling such companies to issue debt instruments within just a few days.
The Programme will assist the companies in managing the liquidity by redistributing funds from cash-generating entities to cash consuming entities within the same Group. The bonds issued under the Programme are Exempt Securities and are offered to Accredited Investors only.
Direct Listing
A Direct Listing is a process for a company to become public without raising capital through the conventional initial public offering process (IPO). Unlike an IPO in which the shares would typically be sold to prospective investors at discount via bookbuilding process, in the direct listing, the initial sale is conducted by the selling shareholders through the Exchange, with the prices determined based on matching buy and sell orders in accordance with the AIX Trading Rules. For the purpose of the direct listing, AIX allows issuers to have zero free float on the Admission Date and to meet these requirements over a 1-year period.
By going public, the company allows existing shareholders to freely sell their shares in the public market. Besides, with a direct listing, there is no need for traditional underwriter involvement and bookbuilding which decreases the time and cost of the listing. We believe that allowing for multiple pathways for private companies to achieve exchange listing will encourage more companies to participate in the public equity markets and provide investors with a broader array of attractive investment opportunities.
SME bonds
New bonds for small and medium-sized enterprises (SME Bonds) are tailored to support small and medium-size enterprises (SMEs) in securing short-term KZT funding within predefined limits, leveraging the opportunities of the capital markets.
AIX has adjusted the listing requirements and revised its standard fees for SMEs at the same time imposing specific obligations to ensure timely service of them by the businesses.
Detailed information on the SME Bonds in the SME Bond Guide.
Commercial paper
Commercial paper is a commonly used type of unsecured, short-term debt instrument issued by companies with proven creditworthiness and typically used for financing the issuer’s short-term working capital needs (payroll, accounts payable, inventories, other operating expenses related to core activities of the issuer).
Commercial paper may be offered to professional (accredited) investors in any denomination. Given that offers are directed at Accredited Investors, it will be sold in lots of at least US$100,000. Other corporates, financial institutions, high net worth individuals, and money market funds are usually buyers of commercial paper.
Commercial paper is usually issued at a discount from par value and reflects prevailing market interest rates. Maturity on commercial paper may range from several days up to no longer than 365 days.
Mining Segment
In 2019, AIX approved Mining Company Rules based on the standards applying to mining company listings on the Toronto and Australian stock exchanges. The Rules apply a differentiated approach separating large mining companies in advanced stages of development (Tier 1) from junior companies with a higher degree of risk and potentially higher returns (Tier 2). A key requirement for companies is that they should have a qualified report on geological performance and mineral reserves.
Depending on the assigned tier, mining companies may be exempt from net income and minimum market capitalization listing requirements. Issuers will be required to demonstrate that they employ qualified management and technical personnel, and use geological reporting, as evidenced by independent experts in accordance with the best international mining industry standards.
Please refer to AIX Mining Company Rules of the AIX Business Rules.