IPO In Kazakhstan Could Be Risky
An Kazakhstan – IPO is something that sounds foreign to the majority of investors. Oddly enough, some people relate Sacha Baron Cohen’s satirical Borat character to Kazakhstan instead of comparing the country to vast exports in uranium, oil and metal.
Back in the 1990′s we saw a wave of privatization in Europe, which spurred interest from U.S. investors, institutional and retail a like. Now we are seeing a potential trend starting in Central Asia.
Kazakhstan is planning to launch a “People’s IPO” to it’s tiny population of under 17 million. Multiple companies in Kazakhstan could be involved in the offering process. Now, even for hedge funds, an IPO in Kazakhstan could be risky, especially in their illiquid market. But could some of these potential jewels potentially trade in the U.S. markets ? Time will only tell, but if all goes well, a trend could be developing that could help commodity stocks across the board, all the way down from well known uranium stocks, to unknown mining penny stocks.
IPO Could Help Mining Stocks
Now this could be a political ploy, because there has been a wave of foreign investment in the Central Asian country, and only 5 to 15% of the shares are slated to be sold to locals at some point in 2012. Now remember, an IPO in Kazakhstan may not be front page news, but many experts frowned on Russian and Chinese offerings when they were in their capitalist infancies too.
So while we may not be able to offer insightful color on a specific IPO in Kazakhstan, we might see some sympathy plays develop in the penny stock arena based on this new foreign event.
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As many of our followers already know, uranium stocks were in play just a few months back. We followed Cameco Corp. (CCJ:NYSE) periodically on our stocks to watch list during the 
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