KAZAKHSTAN Railways (KTZ) plans to go public in the first quarter of 2027 in a triple listing on the Astana International Exchange (AIX), the London Stock Exchange (LSE) and the Hong Kong Stock Exchange (HKEX), according to its June 29 shareholders’ meeting.
It is expected that KTZ will list 25% of its common shares. However, according to Kazakhstan’s domestic listing requirements, at least 7.5% of those shares must be listed on AIX.
The government had originally planned to bring KTZ to IPO in 2025. However, this was postponed to 2026 which has now slipped to next year.
All funds raised through the IPO will be retained by KTZ. The management of KTZ reported previously that the reason for going public is to repay outstanding debts which have grown rapidly. KTZ’s nominal debt at the end of April was estimated at Tenge 4.7 trillion ($US 10bn) and more than half of the debt is in hard currency. This compares with Tenge 3.7 trillion in December 2025.
The IPO is expected to contribute to KTZ’s long-term economic growth through capital inflows, better corporate governance and higher standards of efficiency, accountability, and transparency.
KTZ is currently the holding company and national railway operator of Kazakhstan’s mainline railway network. The sole owner of KTZ is the Samruk-Kazyna state fund. KTZ relies on its revenue from its profitable freight exports and international freight transit traffic between Europe and China, while its domestic freight and passenger services operate at a loss.
According to Fitch Ratings, KTZ carries more than 60% of freight traffic in Kazakhstan and about 20% of passenger traffic.
Freight expansion
In the meantime, KTZ subsidiary Kaztemirtrans announced on July 17 plans to acquire 13,000 freight wagons, comprising 10,000 gondolas, 2100 boxcars, and 900 grain hoppers, between 2027 and 2031. Kaztemirtrans currently has a fleet of 39,500 wagons.
