Halyk Bank Finalizes Purchase of 30,853 GDRs on London and European Exchanges in July 2026

Halyk Bank’s Multi-Exchange GDR Acquisitions in July 2026

Over a three-day span in mid-July 2026, Halyk Bank purchased GDRs across three major trading venues. On 14 July, the bank acquired 2,392 GDRs on the London Stock Exchange (XLON), Cboe Europe (BATE), and Cboe Europe Chi-X (CHIX), with weighted average prices between USD 30.69 and USD 30.72 per receipt. The largest single purchase occurred on 16 July 2026, when Citigroup acquired 16,249 GDRs on XLON at a weighted average price of USD 30.70 per GDR, amounting to USD 498,873.55.

Purchasing across multiple exchanges aligns with institutional best practices for large buyback programmes, optimizing execution and minimizing market impact. XLON accounted for the majority of the 30,853 GDRs bought during this period, with 16,249 traded on 16 July alone. BATE recorded 8,696 GDRs across two dates, while CHIX accounted for 4,171 GDRs. The consistent pricing across venues, ranging from USD 30.69 to USD 30.75, indicates a stable market for Halyk Bank’s GDRs during this timeframe.

Citigroup’s Role in Executing Halyk Bank’s Buyback Programme

Citigroup Global Markets Limited served as the executing broker for the buyback initiative, initially announced by Halyk Bank on 1 October 2025. Selecting Citigroup underscores the bank’s global stature and strong institutional ties with major trading platforms. Detailed trade data executed by Citigroup is publicly accessible via Halyk Bank’s investor relations portal, allowing shareholders and market participants to verify transaction specifics and pricing.

This buyback reflects a strategic capital allocation decision by Halyk Bank’s board, signaling management’s confidence in the bank’s GDR intrinsic value at current market prices. Utilizing a dedicated broker with multi-venue access enables large volume executions while maintaining price discipline and minimizing costs. Providing transaction-level transparency demonstrates Halyk Bank’s commitment to regulatory compliance and openness across its London Stock Exchange listing and other jurisdictions.

Halyk Bank’s Leading Position in Kazakhstan’s Financial Sector

As Kazakhstan’s largest financial services group, Halyk Bank offers a wide array of banking and financial products across retail, SME, and corporate sectors. Its services extend beyond lending to insurance, leasing, brokerage, asset management, and lifestyle products, diversifying revenue streams and reducing reliance on any single segment. As of 31 March 2026, the bank reported total assets of KZT 21,196 billion, making it the largest lender in Kazakhstan by asset size.

Halyk Bank operates 530 branches and service points nationwide, representing one of Kazakhstan’s largest branch networks. Beyond its domestic dominance, the bank has expanded into Georgia and Uzbekistan, broadening its revenue base and mitigating concentration risk. Its listing history spans the Kazakhstan Stock Exchange since 1998, London Stock Exchange since 2006, and Astana International Exchange since 2019, providing multiple access points for international investors.

Capital Structure Effects of the July 2026 GDR Buyback

The acquisition of 30,853 GDRs reduces the outstanding GDR count, typically enhancing earnings per share and book value per share for remaining shareholders, assuming stable net income. Share repurchases serve strategic roles such as supporting share prices during volatility, signaling management confidence, and offering tax-efficient capital returns compared to dividends. Executing this tranche during summer months, when European trading volumes may be lighter, suggests a deliberate strategy to achieve target pricing.

Initiated in October 2025 and ongoing through July 2026, this buyback tranche’s weighted average price of USD 30.70 per GDR offers a benchmark for future valuations. The board’s continuation of repurchases nine months post-announcement indicates sustained conviction or a measured capital deployment approach. These completed transactions represent part of the overall programme, with discretion retained for further purchases based on market and regulatory conditions.

Strategic Multi-Venue Execution of GDR Purchases

Halyk Bank’s GDR purchases were distributed among the London Stock Exchange (XLON), Cboe Europe’s primary board (BATE), and Chi-X platform (CHIX), reflecting institutional best execution standards. XLON accounted for 16,616 of the 30,853 GDRs, approximately 54% of total volume, consistent with the main exchange’s liquidity and tight spreads. Supplementary trades on BATE (8,696 GDRs) and CHIX (4,171 GDRs) illustrate effective use of alternative venues to optimize pricing.

The narrow weighted average price range from USD 30.69 to USD 30.75 across venues indicates efficient price discovery and limited market fragmentation. Large institutional buyers typically execute across multiple venues to reduce market impact and secure better average prices. The stable pricing during the three-day window suggests steady demand and no significant adverse news affecting valuations. Institutional investors could monitor the programme’s activity across venues via real-time market data.

Regulatory Compliance and Transparency in Buyback Disclosure

Halyk Bank’s announcement complies with mandatory disclosure rules across its multiple listings, including UK Listing Authority, Kazakhstan Stock Exchange, and Astana International Exchange regulations. The detailed transaction summary—covering dates, volumes, prices, and venues—exceeds minimum disclosure standards, underscoring the bank’s transparency commitment. A hyperlink to granular transaction data further enhances investor verification capabilities.

The announcement clarifies it does not constitute an offer or solicitation to trade securities, a standard legal disclaimer protecting the company. The inclusion of the legal entity identifier (LEI 213800NYDTVQM4SDUD67) facilitates regulatory and market participant verification. Investor relations contact details, including phone numbers and emails for named individuals, enable direct communication regarding the buyback and corporate matters. This structured disclosure aligns with international corporate governance norms expected of London Stock Exchange-listed entities.

Effects on Shareholders and Earnings Metrics

Reducing outstanding GDRs through buybacks typically enhances per-share metrics such as earnings per share, book value per share, and dividends per share, assuming constant net income. Shareholders who do not sell during repurchases may experience ownership dilution offset by improved per-share financial metrics. This trade-off benefits non-participating shareholders if buyback prices remain below intrinsic value.

The July 2026 tranche’s weighted average price near USD 30.70 provides insight into management’s valuation perspective. Should GDR prices rise significantly above this level, shareholders retaining shares benefit disproportionately from enhanced per-share metrics. Conversely, a material price decline below buyback levels could lead to criticism regarding capital efficiency. The buyback’s ongoing nature, spanning October 2025 to July 2026, allows management to average purchase prices over time and mitigate execution risk.

Halyk Bank’s Multi-Exchange Listing Strategy and Investor Access

Halyk Bank’s listings on the Kazakhstan Stock Exchange (since 1998), London Stock Exchange (since 2006), and Astana International Exchange (since 2019) reflect a strategic capital and investor accessibility approach. The London Stock Exchange GDR listing offers international investors exposure under a western regulatory framework and US dollar trading. The Kazakhstan Stock Exchange listing connects to domestic investors and local currency capital raising. The Astana International Exchange listing provides access to Central Asian investors and those targeting Astana’s growing financial hub.

The July 2026 GDR purchases’ distribution across London and European venues (XLON, BATE, CHIX) indicates participation by an international institutional investor base. Non-UK investors typically access Halyk Bank equity via the London GDR listing due to superior liquidity, currency convenience, and regulatory familiarity. This geographically diversified execution ensures repurchases occur at prices reflecting the international shareholder base rather than a single venue’s pricing anomalies, exemplifying multinational financial institution best practices.

Outlook and Continuation of the Buyback Programme

The announcement confirms the July 2026 transactions as part of the broader buyback programme initiated in October 2025 but does not specify programme end dates, total GDR repurchase targets, or maximum aggregate spend. Investors should anticipate periodic updates on additional buyback tranches consistent with standard share repurchase programme practices. The bank’s track record of executing multiple tranches over an extended period suggests a patient, disciplined capital deployment strategy rather than rapid front-loading.

Absent forward guidance on programme duration, management retains flexibility to adjust buyback activity based on market conditions, business needs, or regulatory capital requirements. Should acquisition opportunities or capital investments arise, the board may suspend or terminate the programme to preserve capital. Conversely, if market conditions remain favorable and valuations attractive, periodic repurchases may continue. Shareholders and investors should monitor future disclosures and regulatory filings for updates on programme status.