Fintech company Kaspi.kz confirms IPO plans

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Fintech company Kaspi.kz has confirmed plans to float on the London Stock Exchange as a standard listing later this month.


In the IPO, current shareholders will sell existing shares in the form of global depositary receipts (GDRs), with each of them representing one share.


At least 20% of the maximum number of GDRs will be offered for sale through the Astana International Exchange. The Shares are also listed on Kazakhstan Stock Exchange.


All selling shareholders, which include private equity firms and a subsidiary of Goldman Sachs, plan to retain an interest in the company after the IPO.


It is the largest payments and marketplace ecosystem in Kazakhstan and has 7.8mln monthly active users of its associated ‘Super App’, which enables the use of its three current platforms.


The payment platform connects its customers – both consumers and merchants – to facilitate cashless, digital payment transactions, transfer and withdraw money. In June 2020 it accounted for 66% of total payment network transactions in Kazakhstan.


The marketplace platform allows customers to buy and sell products online and it offers options such as buy-now-pay-later consumer finance products, fulfilment, marketing and branding services. It was the largest online retailer in Kazakhstan by sales value in 2019.


Finally, the fintech platform provides digital finance products, including consumer finance and deposits. Kazpi.kz had 32% of market share of consumer loans in the country last year.


The company said it expects its customer base to keep growing as people’s lives become increasingly digitalised, especially in the backdrop of COVID-19.


Looking at returns, Kaspi boasted that it has a track record of returning more than 50% of its annual net income to shareholders either via dividends or buybacks and the plan is to pay distributions annually of at least 50% of net income.


In the first half of 2020, revenue jumped 31% to US$741mln while net income was 50% higher at US$286mln.


The company had tried to float in London last year but decided to postpone the IPO due to uncertain market conditions in the tech sector.

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