Groundbreaking Kazakhstani Initial Public Offering Utilizes New Isle of Man Company
Kazakhstan Kagazy PLC ("Kagazy"), a major industrial group in Kazakhstan responsible for running Central Asia's largest producer of paper and packaging as well as operating one of the leading commercial real estate development companies in the country, has become the first Isle of Man company of its kind to be admitted to the London Stock Exchange (LSE) official list.
The offer and listing marks the first use of the Companies Act 2006 to effect an offer of shares in the form of Global Depository Receipts (GDRs), as part of an initial public offering. Cains advised on Isle of Man law issues relating to the offering and listing and unconditional dealings in the GDRs commenced on 25th July 2007.
Commenting on the Cains' role in the listing, Andrew Corlett, Managing Director of Cains, says: "Kagazy's use of the Isle of Man's new form of company confirms that the island now has the relevant tools at its disposal to compete with the world's major offshore centres for full and AIM listing work.
"The listing also reflects the Isle of Man's growing international reputation as a centre for excellence in corporate structuring and an effective gateway to London and its capital markets.
"It's also pleasing to see that the Act is now being recognised and accepted by the global financial services community as an appropriately flexible listing vehicle which can be tailored for the most complex of transactions."
Baglan Zhunussov, the Chairman of Kazakhstan Kagazy PLC, added: "The Isle of Man offered Kagazy an alternative to other leading jurisdictions. We look forward to our life as a publicly listed company."
The listing also marks a double milestone in Cains' growth as a leading offshore legal adviser on the international stage. The firm has already built a strong track record in advising companies from around the world, including Indian companies and investment funds, to float successfully on the LSE's junior Alternative Investment Market (AIM).
Andrew Corlett adds: "Besides providing us with an essential foothold in the fast-expanding Central and Eastern European region, this listing underscores our credentials as offshore legal advisors to companies, wherever they are in the world, seeking to trade securities on the LSE official list.
"Our professional mix of London-trained and specialist international lawyers, combined with first hand experience of working closely with City of London banking, legal and other professionals, ensures that we remain in the perfect position to execute market listing transactions for international clients."
Baker & McKenzie LLP were transaction counsel on the listing with ING Group Acting as global co-ordinator, bookrunner and lead manager of the offering.
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