【New IPO】Kazakhstan National Railway Submits Listing Application, Last Year’s Profit Growth More Than Doubled

Kazakhstan’s national transport and logistics operator Kazakhstan Temir Zholy has submitted a listing application to the Hong Kong Stock Exchange, with CICC as the sole sponsor.

According to the preliminary prospectus, the company is one of the important land transport corridors connecting Kazakhstan’s production centers with China, Central Asia, Russia, the Caspian region, and Europe. It covers all 17 regions of Kazakhstan, with a railway network of approximately 16,000 kilometers, ranking third among CIS and Baltic states with a track gauge of 1,520 millimeters.

The company is wholly owned by Kazakhstan’s sovereign wealth fund Samruk-Kazyna. In 2025, its freight turnover was 288.8 billion ton-kilometers, representing a year-on-year increase of 10.36%.

As of the end of December 2025, full-year profit was 343.646 billion tenge, increasing 1.14 times year-on-year; revenue was 2.75 trillion tenge, up 27.41% year-on-year. Of this, freight revenue rose 31.33% year-on-year to 246 billion tenge, accounting for 89.3% of the total of comprehensive income and other gains; passenger revenue increased 16.94% year-on-year to 129.25 billion tenge, with its revenue share at approximately 4.7%. Gross profit margin was 30.2%, up 5.1 percentage points year-on-year.

The proceeds from this fundraise will be used for railway digital infrastructure construction; building new railway lines; repaying the principal and accrued interest on part of the group’s interest-bearing borrowings; and for working capital and general corporate purposes.

Secretly Met with the HKEX Team During May’s Visit to Hong Kong—Laying Groundwork for Listing Early

Notably, Nurlan Zhakupov, CEO of Kazakhstan’s sovereign wealth fund Samruk-Kazyna, had met with the Hong Kong Exchanges and Clearing Limited (HKEX) (00388) team during his May visit to Hong Kong. The meeting included HKEX Chief Executive Officer Chen Yiting, Head of Global Issuer Services Xu Jingwei, Head of Global Issuer Services Asia Zhang Shuming, and others. During the discussions, both sides clearly identified HKEX as one of the potential international listing venues for the future initial public offering (IPO) of Kazakhstan’s national railway (KAZAKHSTAN TEMIR ZHOLY JSC, KTZ).

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