Kazakhstan 's economic development and trade minister has revealed a plan to sell off to local investors between 5% and 15% of half a dozen of the country's bigger state concerns, the state holding company, which owns 100% or majority stakes in the companies, said Wednesday.

The three-tiered initial public offering plan, dubbed the "People's IPO", involves the state oil company, KazMunaiGas, and the national airline, Air Astana, among others, Samruk-Kazyna Welfare Fund, the holding company, said in a statement.

The program is due to start sometime next year and end at an unspecified date "after 2015," the statement said.

This latest effort to develop the local stock market is expected to bring in $100 million to $200 million from individuals and $200 million to $300 million from pension funds, the minister Kairat Kelimbetov said.

These numbers are dwarfed by the size of Kazakhstan 's stock market, valued at $46 billion and considered chronically underdeveloped in relation to the $168 billion economy.

The move will help develop interest in the local capital market, said Almaty-based analyst Hans Holzhacker in Unicredit's FI/FX Research EEMEA Daily. "But the $500 million will hardly have a major short-to-medium-term impact on the saving behavior of the population or on the funding policy of companies."

In a first phase planned for next year, shares of KazTransOil, the national pipeline monopoly, KEGOC, the power grid monopoly, and Air Astana, will be offered on the stock exchange.

The second phase will include the national gas transportation company, KazTransGas, the state shipping concern, Kazmortransflot, and Samruk-Energo, which controls state power-generating assets. The national railway company, Kazakhstan Temir Zholy, and Kaztemirtrans, the railway cargo monopoly, will be listed in a third phase, according to the fund statement.

The national oil and gas company, KazMunaiGas, and the world's largest uranium miner, Kazatomprom, are expected to follow after 2015, the statement added.

"This is an opportunity for the people of Kazakhstan to participate in the growth prospects of its leading companies and we hope the program will become an important driver of economic development and diversification for the country," Kuandyk Bishimbayev, deputy chief executive officer of Samruk-Kazyna, was quoted as saying.

The proposals are due to receive their final reading in parliament on Aug. 27.

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