SHAREHOLDERS in BAE Systems could be set for a windfall of hundreds of millions of pounds on the back of Kazakhstan's national airline listing in London.

According to a report in The Mail on Sunday, the arms giant is mooting whether to use the extra money to reward shareholders with a one-off dividend or fund further share buyback programmes. BAE has a 49 per cent stake in Air Astana.

News of the listing comes as a major boost for London's sluggish IPO market. The Kazakhstan carrier is the biggest airline in central Asia with over 50 aircraft in its fleet and hopes to raise £95m with dual listings in the UK capital and its home country.

Its valuation could reach up to £780m following the float, which is expected next month and would be a windfall for BAE.

BAE declined to comment on the report, but a spokesperson said: "Air Astana is a thriving, wellmanaged business and we believe it presents an attractive proposition to the market."

(c) 2024 City A.M., source Newspaper