Kazakhstan Railways eyes Hong Kong for 2026 IPO - AIX

ALMATY. April 28 (Interfax) - Kazakhstan's national railway company, Kazakhstan Temir Zholy (KTZ), is considering Hong Kong as a venue for an initial public offering planned for late 2026, according to the Astana International Exchange (AIX).

"Saken Muratuly, head of the Samruk-Kazyna fund's representative office in China, said during a capital markets panel session at AIFC Connect in Shanghai that Hong Kong would be one of the international venues for KTZ's IPO," AIX said in a statement Tuesday.

KTZ could be attractive to Chinese investors because the company is a key link in the Middle Corridor, a trade route connecting China to Europe.

Muratuly said that traditionally 96% of goods from China to Europe were transported by sea, but geopolitical circumstances in recent months have shown that route can be vulnerable. "Maritime delivery takes about two months, while KTZ can deliver cargo to Europe in 14 days. That route previously took 18 days, but infrastructure modernization allowed the company to reduce transit time," according to AIX.

KTZ has invested $15 billion in infrastructure and plans to invest the same amount by 2030.

KTZ previously said it aims to hold an IPO later this year to pay down its debt. The company's balance sheet debt stands at 3.8 trillion tenge, with nominal debt at 4.7 trillion tenge.

Transport Minister Nurlan Sauranbayev said that in the future, KTZ would become one of the top dividend payers within the Samruk-Kazyna group of companies.

KTZ is a transport and logistics holding company and the operator of Kazakhstan's main railway network. Its sole shareholder is the state fund Samruk-Kazyna.