The results of the first Tabys-exclusive bond offering exceeded expectations

Tabys App, the AIX mobile application has successfully introduced a new instrument for its users by expanding its product line to include debt instruments. Solva Group Ltd., one of the largest microfinance institutions, has issued Bonds which have been offered to the Tabys investors community for the first time. Within two weeks, over 600 bids were submitted by retail investors via Tabys. The total nominal issue volume of two-year bonds on the AIX exchange amounted to $15,000,000.

Birzhan Astayev, Chief of Market and Products of AIX, noted:

“We remain steadfast in our commitment to our strategic objectives and are dedicated to contributing as an institution to the growth of the retail investor community. The Tabys application was launched as a social project a few years ago, to attract retail investors into the capital market via offering them a diverse range of products. The bond issued by Solva received a positive response from retail investors and moving forward, we plan to expand our range of instruments and introduce additional initiatives.”

Rinat Aliyev, Managing Director of Capital Markets and Investor Relations, Solva Group ltd, commented:

“Solva Group is currently one of the largest bond issuers on the local market. We are delighted to be the debut bond issuer introduced to the Tabys App. The AIX team has done a tremendous job in launching such a product, which is convenient for retail investors and is now available to issuers from the corporate sector”.

The ratio of applications from women to men in this placement was 56% (women) to 44% (men). The age range of investors is quite wide – the youngest investor is 17 and the oldest is 72 years old.

The direct subscription feature was developed in the app in 2022 and was first used for the IPO of national company KazMunayGas, and later for the SPO of KEGOC and the IPO of Air Astana. To date, 50,000 people in Kazakhstan have an account on the app.

Direct subscription is highly regarded because it does not require an investor to open a special account with an intermediary. It provides the opportunity to buy securities directly from the issuer. Direct subscription is convenient for those investors who follow a buy-and-hold investment strategy, but in order to sell securities it is necessary to make a transfer to a brokerage account. The application also offers a cash account feature where monthly coupon payments are credited, and the amount owed is paid out at the end of the bond’s term. Investors can withdraw the amount from the cash account or use it for other investments within the application free of transfer commissions.

Tabys App is a mobile application for novice investors launched by the Astana International Exchange in 2020. The project aims to increase financial and investment literacy among the Kazakhstani people. Over the years, more than $17 million has been traded in the application, and during the IPO/SPO, more than 12,000 applications worth 1,8 billion tenge were collected.

Reference:

AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, the Shanghai stock exchange, the Silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. www.aix.kz

The Astana International Financial Centre (AIFC) is an independent jurisdiction that started (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. www.aifc.kz