The Corporate Law Group

“People’s IPO’s”

Former Soviet satellite Kazakhstan is planning some People’s IPO’s, as state owned firms are sold off and the wealth shared. In part to fight claims of a corrupt ruling elite (pardon our cynicism, but which country doesn’t have one of those?), and in part to benefit its citizens, certain state owned companies are to be floated. For example, the production subsidiary of the state owned oil company will float 5% of the company on the Kazakh stock exchange. It is already listed on the London exchange. Said Kazakhstan president Nursultan Nazarbayev, “This is an event of paramount importance to the state…the whole world is earning money on stock markets and citizens of Kazakhstan should also learn how.” The actual wealth comes from hard work, smart decisions, good business, and a good investment climate, but a stock exchange certainly has a part to play in wealth creation. Although we find it ironic that we have yet another politician trumpeting the sale of the people’s asset to the people who already supposedly own it. Maybe another way to do this could have been for the state to divest itself he oil company in favor of the Kazakh citizens who then could have sold or kept their shares as they saw fit and elect professional management rather than politicians to make these business decisions. We won’t hold our breath.
— Paul Marotta

Leave a Reply