KTZ files for HK listing as revenue jumps 27% to $5.6B

Kazakhstan Temir Zholy (KTZ), the state-owned railway operator, filed a listing application to the Hong Kong Stock Exchange, reporting $5.65 billion in revenue last year, up 27.41% year over year.

The company recorded gross margin of 30.2%, up 5.1 percentage points from a year earlier. Profit for the year reached $718 million, more than double the prior year's figure, according to the preliminary prospectus.

Wholly owned by Kazakhstan's sovereign wealth fund Samruk-Kazyna, KTZ operates the country's trunk railway network and owns the largest fleet of locomotives and railway vehicles in Kazakhstan. China International Capital Corp. is acting as the sole sponsor for the listing.

The company did not disclose the proposed offer price, deal size, or target listing date in the application. Cornerstone investors and valuation metrics versus listed peers have also not yet been announced.

The Hong Kong IPO would give international investors direct exposure to Kazakhstan's transport infrastructure, a critical link in China's Belt and Road Initiative connecting Asia to Europe. Pricing terms and valuation will be closely watched when the company updates its prospectus ahead of the trading debut.

This article is for informational purposes only and does not constitute investment advice.