Law On People's IPO

The Law of the Republic of Kazakhstan No. 538-IV ЗРК of 12 January 2012 "On amendments to some legislative acts of the Republic of Kazakhstan regarding development of the securities market of the Republic of Kazakhstan" (the "Law")1 came into effect on 25 January 2012 (apart from certain provisions). The main purpose of the Law is to create an appropriate legislative framework in Kazakhstan for implementing the so-called "People's IPO" state programme which envisaged the privatisation of a number of Kazakh blue chip companies through initial public offerings on the national stock exchange.

Please note the following provision of the Law:

A Kazakh issuer cannot sell its shares to foreign citizens and/or foreign companies or stateless persons, if the controlling portion of its shares is either directly or indirectly owned by the JSC NWF...