The FINANCIAL -- London Stock Exchange Group (LSEG) on November 3 signed a Memorandum of Understanding (MoU) with JSC Kazakhstan Stock Exchange (KASE), the first ever between the two exchanges.
The agreement, signed by Nikhil Rathi, CEO, LSE plc and Yeszhan Birtanov, CEO, JSC Kazakhstan Stock Exchange, will see both organisations work closely together to expand on listing opportunities for Kazakh companies in London and the Republic of Kazakhstan (Kazakhstan), as well as help deepen relationships with key stakeholders in the UK and Kazakhstan.
The signing ceremony, part of the second UK-Kazakh Intergovernmental Commission meeting attended by Kazakhstan President, Nursultan Nazarbayev and UK Prime Minister, David Cameron, took place in front of The Rt Hon Lord Maude, British Minister of State for Trade and Investment and Minister Issekeshev, Ministry of Investments and Development, Republic of Kazakhstan. The agreement further strengthens financial ties between London and Kazakhstan, according to London Stock Exchange.
The MoU outlines several areas for closer collaboration with a particular focus on promoting dual listings of Kazakh companies in Kazakhstan and London, facilitating access to capital for Kazakh companies through London Stock Exchange. Both exchanges will also explore the development of new products and support investor education and awareness programmes in Kazakhstan and the UK.
Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Business Development, said:
“The MoU signed between Kazakhstan Stock Exchange and London Stock Exchange Group heralds an exciting new chapter for Kazakhstan’s capital markets and we are delighted to have been chosen to support KASE in its expansion plans.
“With 17 Kazakh companies already listed in London, the agreement holds huge potential for future business opportunities between our two exchanges and reinforces London’s position as the leading market place for global business. It also reflects LSEG’s commitment to an open access approach, supporting KASE, as it delivers on its ambition to become a major regional financial centre.”
Yeszhan Birtanov, CEO of JSC Kazakhstan Stock Exchange said:
“KASE recognizes LSEG as one of the leading stock exchanges in the world. Closer connections and cooperation between both of our exchanges will support the sustainable development of KASE in light of the upcoming focus on the International Financial Center in Astana”.
London Stock Exchange Group has a long history of supporting the development of emerging market exchanges. In the past 12 months we have partnered with Borsa Istanbul, the Casablanca Stock Exchange and Mongolia Stock Exchange, supporting them in a variety of expansion plans across the full exchange business chain, including listing, trading, technology and clearing.
Through our technology arm, MillenniumIT, we provide state-of-the-art technology to help jump-start development and attract institutional investors to emerging markets. Recently both the Indian and Lima stock exchanges have selected MillenniumIT to power their markets.
There are currently 17 Kazakh companies listed in London, by primary country of operation, with a combined market capitalisation of $9.6 billion. 10 are listed on the Main Market and seven are quoted on AIM.
Since 2005, Kazakh companies have raised $5.9 billion on London’s markets. The last Kazakh company to list in London was KCELL, Kazakhstan’s leading provider of mobile telecommunications services. The company listed on both KASE and London Stock Exchange’s Main Market in December 2012, raising $525 million, with a market capitalisation of $2.1 billion.