Financial Analytics: Science and Experience
 

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
Google Scholar

Online available

EBSCOhost
Eastview
Elibrary
Biblioclub

Archiving

Cyberleninka (12 month OA embargo)

The IPO market: International experience, development trends and practice in initial public offering in Kazakhstan

Vol. 12, Iss. 4, DECEMBER 2019

PDF  Article PDF Version

Received: 23 July 2019

Received in revised form: 14 August 2019

Accepted: 10 September 2019

Available online: 29 November 2019

Subject Heading: FINANCIAL INSTRUMENTS

JEL Classification: D53, E65, G11, G14

Pages: 450–467

https://doi.org/10.24891/fa.12.4.450

Nurasheva K.K. М. Auezov South Kazakhstan State University, Shymkent, Republic of Kazakhstan
nurasheva@mail.ru

https://orcid.org/0000-0002-4639-467X

Mergenbaeva A.T. М. Auezov South Kazakhstan State University, Shymkent, Republic of Kazakhstan
aziza.mer.69@mail.ru

https://orcid.org/0000-0001-8387-7673

Kulanova D.A. М. Auezov South Kazakhstan State University, Shymkent, Republic of Kazakhstan
k_dana_a@mail.ru

https://orcid.org/0000-0001-9188-5243

Abdikerimova G.I. М. Auezov South Kazakhstan State University, Shymkent, Republic of Kazakhstan
abdikerimova71@mail.ru

https://orcid.org/0000-0003-2495-1209

Subject The article is devoted to the stock market of Kazakhstan. It considers the IPO as one of segments of the said market.
Objectives We focus on analyzing the global IPO market by the number of placements and the volume of attracted capital, considering the factors that resulted in the success or failure of investment initiatives, studying the stages of formation of the IPO market in Kazakhstan, and developing proposals for its improvement.
Methods We employ the data-fetching method, data grouping, the systems and statistical analysis, and the content analysis of available sources.
Results The analysis of the largest placements showed that even if managers calculate all risks, it does not guarantee any success. The first IPO experience demonstrated low capitalization of shares, high volatility due to their small size. Kazakh IPOs have risks of ownership change, privatization of enterprises, uncertainty in price and tariff regulation. Ordinary people do not have money and skills necessary to invest in the local stock market. The paper offers to increase the transparency of companies, develop clear guarantees for the rights of ordinary shareholders. Our proposals for the development of IPO in Kazakhstan can help form the stock market. The described experience is also useful for countries with developing economies.
Conclusions Decisive action is required to distribute income equitably and increase the the well-being of citizens. It is important to improve the legislation on protecting the rights of shareholders, transparency of companies, and wide participation of the public in the stock market.

Keywords: investment, capital, development, stock market, securities

References:

  1. Glavina S. European IPO Market. Global and Regional Stock Exchanges. Economics and Management, 2013, vol. 18, iss. 4, pp. 632–642. URL: Link
  2. Konovalova K.Yu. [Development of the International Infrastructure of Stock Exchanges and Means of the International Investment in the Conditions of Financial Globalization]. Vestnik ekspertnogo soveta, 2016, no. 2, pp. 24–34. URL: Link (In Russ.)
  3. Noluthandos M. Monitoring and Evaluation of Municipal Planning. Public and Municipal Finance, 2017, vol. 6, iss. 4, pp. 15–22. URL: Link.2017.02
  4. Charnavoki V. International Risk-sharing and Optimal Monetary Policy in a Small Commodity-Exporting Economy. Russian Journal of Money and Finance, 2019, vol. 78, no. 2, pp. 3–27. URL: Link
  5. Baker M.P., Wurgler J. The Equity Share in New Issues and Aggregate Stick Returns. The Journal of Finance, 2002, vol. 55, iss. 5, pp. 2219–2257. URL: Link
  6. Kilp J., Anvari V., Springfield S., Roberts C. The Impact of the Global Financial Safety Net on Emerging Market Bond Spreads. Russian Journal of Money and Finance, 2019, vol. 78, no. 2, pp. 43–66. URL: Link
  7. Nurasheva K.K., Mergenbayeva A.T., Kulanova D.A., Abdikerimova G.I. et al. IPO Market: Transformation of Savings into Investments. Bulletin of National Academy of Sciences of the Republic of Kazakhstan, 2019, vol. 1, no. 377, pp. 119–125. URL: Link
  8. Khamidullina E.R. [The stages of development of the legislation on the securities market in Kazakhstan]. Vestnik KazNU. Ser.: Yuridicheskaya, 2013, no. 3, pp. 118–123. (In Russ.)

View all articles of issue

 

ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 12, Iss. 4
December 2019

Archive