Kazakhstan’s national airline has announced plans to float on the London stock market, bringing a potential windfall to BAE Systems, which has been an investor for more than two decades. Air Astana, which is 49% owned by the British defence company, hopes to list in London and Kazakhstan and raise $120m (£94m). The airline, which is majority owned by the Kazakh sovereign wealth fund, did not say how much of the company would be floated and is yet to confirm an expected valuation range. The float, which has been years in the making, could offer a cash boost to BAE Systems, which manufactures fighter jets, submarines and warships, and acquired its stake via an unusual route. The company was pursuing a deal to sell its radar systems to the Kazakh military in 2001 and as part of the deal it agreed to help fund the launch of Air Astana through a $8.5m agreement. The radar deal fell through, reportedly under pressure from Russia, but BAE’s interest in the airline remained, and the investment was valued at £63m by the company last year. The listing offers a rare bright spot for London’s stock market, which has experienced a dearth of floats in recent years. The City is struggling to compete with overseas rivals to land big flotations, and one of last year’s biggest, the natural soda ash producer We Soda, was abandoned because of a disappointing valuation. Air Astana intends to use the proceeds of the twin listing to invest in expanding in its fleet and putting on more flights. It already flies to destinations across Europe, the Middle East and Asia, including key transport hubs such as London, Amsterdam and Seoul. Its board is chaired by Nurlan Zhakupov, a Kazakh citizen who was previously the managing director of the Kazakh mining company Tau-Ken Samruk and later chief executive of the Kazakhstan Investment Development Fund. The company has three Britons on its board, including its chief executive, Peter Foster, who ran Royal Brunei Airlines before taking over at Air Astana in 2005. Foster said: “We are confident that the initial public offering will accelerate the next stage of growth for the Air Astana Group, and we see significant opportunities to thicken our existing routes and expand into new geographic areas, supported by our continued fleet expansion plan and initiatives to increase operational flexibility.” The former Soviet country has privatised a number of state-owned assets over the last decade, including national oil and gas, electricity and nuclear entities. If the listing is completed, it will bring a payday for bankers working on the deal at Citigroup and Jefferies.