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UPDATE 1-Kazakh oil pipeline aims to raise $199 mln in IPO

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By Mariya Gordeyeva

ALMATY, Oct 12 (Reuters) - Kazakhstan's oil pipelinemonopoly KazTransOil plans to raise 30 billion tenge ($199million) via an initial public offer (IPO) as part of theCentral Asian nation's "People's IPO" programme, a seniorsovereign wealth fund official said on Friday.

The oil-rich country's government plans to invigorate thesmall local stock market and raise around $500 million from afirst round of IPOs, which will see company stakes of 5-15percent sold to retail investors and local pension funds.

KazTransOil's IPO is set to be held by the end of this year,Kuandyk Bishimbayev, deputy head of the sovereign wealth fund,Samruk-Kazyna, told Reuters.

"The issue volume will be 30 billion tenge," Bishimbayevsaid. "Order books on the offering will be open in November," headded. "We will give people an extra month to make sure thateveryone who wishes to take part can subscribe."

He said the planned volume of the IPO represented a 10percent stake in KazTransOil.

The state, represented by Samruk-Kazyna, owns 100 percent ofKazTransOil through its parent company, national oil and gasfirm KazMunaiGas .

"We have conducted preparatory work among the population ...and some 500,000 citizens have firmly expressed their intentionto take part and support the 'People's IPO' programme,"Bishimbayev told reporters earlier on Friday.

"It is still unclear, however, whether all of them will takepart in KazTransOil's IPO, or will distribute their cash andinterest otherwise, taking into account that this programme willbe implemented during five years."

Bishimbayev said that KazTransOil's IPO had been postponedfrom October due to last month's government reshuffle.

Kazakhstan, No. 2 oil producer in the former Soviet Unionafter Russia, is also the world's largest uranium producer and amajor exporter of grain and industrial metals.

The government aims to give ordinary Kazakhs the chance toown shares in the country's major companies.

During later stages of the five-year "People's IPO"programme, the government plans to float stakes in national gridcompany KEGOC, flag carrier Air Astana, gas pipeline companyKazTransGas, state railway monopoly Kazakhstan Temir Zholy,national uranium company Kazatomprom and others.

(Reporting by Mariya Gordeyeva; Writing by Dmitry Solovyhov;Editing by Eric Meijer and Hans-Juergen Peters)

((dmitry.solovyov@thomsonreuters.com))

Keywords: KAZAKHSTAN OIL/IPO