The Kyrgyz Cabinet of Ministers has simplified the listing process for state-owned companies and foreign issuers

The Cabinet of Ministers of Kyrgyzstan has approved new minimum requirements for the listing of securities, simultaneously simplifying market access for certain categories of issuers and raising the quality standards for all participants.

The document introduces a simplified listing procedure that state and municipal issuers, international financial organizations, and certain foreign companies will be able to use.

In effect, this means that government securities will automatically qualify for the highest listing category, and municipal securities for the second, provided they meet basic conditions, without having to undergo the full selection process.

International financial organizations are also admitted to the highest category under the simplified scheme, which creates the conditions for instruments from major foreign players to enter the market.

The new model establishes a two-tier listing system:

• the first (highest) category;
• the second (immediately following the highest).

At the same time, the exchange gains the right to tighten requirements, as well as to transfer issuers between categories or delist them in the event of violations.

For commercial companies, entry into the highest category is restricted. An issuer must:

• have been in operation for at least 3 years;
• have capital of at least 200 million KGS;
• be profitable (for one year or cumulatively over three years);
• prepare financial statements in accordance with IFRS;
• have an independent audit opinion;
• comply with the requirements for public companies.

Requirements for the second category are less stringent:

• minimum operating period—1 year;
• capital—at least 30 million KGS;
• profitability—for the last year or the past two years combined;
• IFRS and an audit are also mandatory.

Special emphasis is placed on corporate governance. The existence of an appropriate code is a mandatory condition for admission to listing in both the top and second categories.

Foreign issuers are eligible for listing, including through a simplified procedure, though with certain restrictions.

The company must:

• have been in existence for at least 3 years;
• be listed on a foreign exchange;
• ensure sufficient trading volume (at least $1 million per day);
• disclose financial statements in accordance with IFRS;
• have at least 25% of its shares in free float.

Additionally, a requirement is introduced that there be no ties to offshore zones or entities on sanctions lists.

It is also stipulated that financial instruments linked to cryptoassets and not recognized as securities are not eligible for listing.

The resolution repeals the previous listing rules, which had been in effect since 2015.