Citi Appointed as Depositary Bank for Air Astana Group GDR Program

Rhea-AI Summary

Citi's Issuer Services appointed as depositary bank for Air Astana Group's GDR program, expanding investor outreach. Air Astana's GDRs trade on LSE, AIX, and Rule 144A GDRs. Each GDR represents four ordinary shares. Citi to provide support through its global network.

Insights

Financial Analyst

The appointment of Citi as depositary bank for Air Astana's Global Depositary Receipt (GDR) program is a strategic move that could facilitate increased liquidity and access to a broader range of investors. GDRs are a financial instrument used by companies to attract foreign investors without the complexities of listing abroad. For Air Astana, this could mean enhanced visibility and potentially better valuation due to the diversification of its investor base.

From a financial perspective, the partnership with a reputable institution like Citi, known for its extensive equity distribution network, could bolster investor confidence in Air Astana's GDRs. The ability to trade on the London Stock Exchange and Astana International Exchange provides a dual market exposure, which is often attractive to institutional investors seeking to diversify their portfolios across emerging markets.

However, it is crucial to monitor the trading volume and price performance of Air Astana’s GDRs post-appointment to gauge the effectiveness of Citi's investor outreach initiatives. The success of such programs is not guaranteed and depends on various factors, including market conditions and investor sentiment towards the airline industry, which can be volatile.

Market Research Analyst

The airline industry has seen significant challenges and companies like Air Astana must navigate these while maintaining investor interest. The partnership with Citi could provide Air Astana with strategic advantages in terms of market research and investor relations advisory, which are critical for understanding investor behavior and market trends.

By tapping into Citi's global network, Air Astana could gain insights into how to position itself competitively in the global market. This includes understanding the nuances of investor expectations in different regions, which can significantly impact the demand for GDRs. Furthermore, the dual listing on the LSE and AIX could offer a unique proposition to investors looking for exposure to Central Asian markets.

It will be important to analyze the long-term impact of this move on Air Astana's market share and financial health. The ability to attract foreign capital can be a catalyst for growth, but it also requires the company to adhere to international reporting standards and maintain transparency, which can be a challenge for some firms.

LONDON--(BUSINESS WIRE)-- Citi’s Issuer Services, acting through Citibank, N.A., has been appointed by Air Astana Group (“Air Astana”), the flag carrier airline of Kazakhstan, to act as depositary bank for its Global Depositary Receipt (“GDR”) program.

Air Astana’s Regulation S GDRs trade on the London Stock Exchange (“LSE”) under the symbol “AIRA” and on the Astana International Exchange (“AIX”) under the symbol “AIRA.Y” and Rule 144A GDRs under the symbol “AIRA”. Each GDR represents four ordinary shares of the company. Air Astana’s underlying ordinary shares are also listed and trade on AIX and JSC Kazakhstan Stock Exchange (“KASE”) in Kazakhstan under the symbol “AIRA”.

“We are delighted to be appointed by Air Astana as depositary bank for its GDR program,” said Dirk Jones, Global Head of Citi’s Issuer Services. “We are confident that we will be able to assist Air Astana in expanding their investor outreach through the support of our Investor Relations Advisory team and our extensive equity distribution network.”

Citi is a leading provider of depositary receipt services. With depositary receipt programs in 67 markets, spanning equity and fixed-income products, Citi leverages its global network to provide cross-border capital market access to issuers, intermediaries and investors.

For more information on Citi’s Depositary Receipt Services, visit www.citi.com/dr.

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions, and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

View source version on businesswire.com: https://www.businesswire.com/news/home/20240219662245/en/

Citi Media Contacts:

Harsha Jethnani

harsha.jethnani@citi.com

+65 93830872

Source: Citi

FAQ

What is the symbol for Air Astana's Regulation S GDRs on the London Stock Exchange?

The symbol for Air Astana's Regulation S GDRs on the London Stock Exchange is 'AIRA'.

Where do Air Astana's Regulation S GDRs trade under the symbol 'AIRA.Y'?

Air Astana's Regulation S GDRs trade under the symbol 'AIRA.Y' on the Astana International Exchange (AIX).

How many ordinary shares does each GDR of Air Astana represent?

Each GDR of Air Astana represents four ordinary shares of the company.

What is Citi's role in Air Astana's GDR program?

Citi's Issuer Services has been appointed as the depositary bank for Air Astana's GDR program.

How many markets does Citi have depositary receipt programs in?

Citi has depositary receipt programs in 67 markets.