Kazakhstan Railways still targeting IPO in 2026

ALMATY. May 25 (Interfax) - Kazakhstan's state railway operator Kazakhstan Temir Zholy (KTZ) and its sole shareholder, the Samruk-Kazyna sovereign wealth fund, have reaffirmed plans for an initial public offering in 2026.

A government decree from October 2025 stipulates the IPO will take place in 2026, "which remains the goal of the fund and KTZ," according to a joint statement.

The company is preparing a triple listing on the London Stock Exchange, the Hong Kong Stock Exchange and Kazakhstan's domestic exchange, the statement said.

"The IPO will be structured as a primary share offering, meaning proceeds will flow directly to KTZ rather than to the fund through a secondary sale," the statement said. The company plans to use the funds to pay down debt and finance a large-scale investment program focused on rail infrastructure modernization, expanding corridor capacity, renewing rolling stock and strengthening the country's transit potential.

"Detailed assessment of financial market conditions will be carried out by investment banks engaged by KTZ closer to the IPO date," the statement said. "This assessment, as well as KTZ's readiness and the level of investor interest, will influence both the exact timing and parameters of the IPO."

The companies declined to disclose further details of the preparatory work, which is being coordinated with the government.

The statement came just days after Transport Minister Nurlan Sauranbayev cast doubt on the 2026 timeline. "KTZ was supposed to go public this year, but at the moment this is not possible," Sauranbayev told a government briefing on May 19. "Samruk-Kazyna is now setting new deadlines. We think the first quarter of 2027."

KTZ carries a balance-sheet debt of 3.8 trillion tenge and a nominal debt of 4.7 trillion tenge, according to earlier disclosures.

Samruk-Kazyna manages Kazakhstan's largest strategic assets, including oil and gas, transport and logistics, and energy companies.