Abstract:
The economic independence of any state is the basis of the welfare of the country’s
population. Starting from 2011, the Republic of Kazakhstan has been working on the
financial stabilization of its core assets by transferring leading national companies to an
IPO. Formation and development of the IPO market requires conducting various economic
analyses and determining the effectiveness of innovative design solutions involved in this
direction.
One of such activities is the corporate asset valuation of the enterprise entering the IPO
market. As a rule, each asset has its own internal base value, which is estimated depending
on the character of cash flows, the rate of their growth and the degree of future risk. As a
result of the evaluation, the enterprise will have an idea of the life cycle of the project being
invested, a pattern of cash flow will be revealed and a discount rate will be determined in
order to determine the present value.
At the initial stage of the IPO market formation in Kazakhstan, major national companies
with long life cycles possessing a sufficient number of assets were identified as the main
participants of the project. To participate in an IPO one should know the basic rules of
investment, trade mechanisms and features, as well as the law regulating these issues.
