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Kaspi.kz revives plans for London listing

posted onOctober 7, 2020
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Kazakhstan's financial group Kaspi.kz said Friday (Oct. 2) it expects its planned London Stock Exchange (LSE) listing to take place this month. The company had tried to float in London last year but decided to postpone the IPO due to “currently unfavourable and uncertain market conditions, particularly in the technology sector”. 

The banking and fintech firm, which controls Kaspi Bank, the third largest bank in Kazakhstan and operates a payments and ecommerce business, said it aims to sell new and existing shares by listing its Global Depositary Receipts (GDRs) on the LSE. However, it did not mention the size of the stake its shareholders were planning to sell or the amount that they were hoping to raise.  

At least 20% of the maximum number of GDRs put up for sale by the selling shareholders will be offered for sale through the Astana International Exchange. The company is already listed on the Kazakhstan Stock Exchange (KASE).

Kaspi counts Russia-based private equity firm Baring Vostok and Goldman Sachs as shareholders.  Goldman Sachs owns 4 percent of the company, Baring Vostok has 35 percent, while Mikhail Lomtadze, Kaspi’s chief executive and co-founder, owns 29 per cent, with chairman Vyacheslav Kim holding the remaining 32 per cent. 
Each of its main shareholders would sell stock in the offering, but also retain a portion of their stake.

During the first six months of 2020 Kaspi.kz reported a net profit of $286 million, up 50% year over year while revenue jumped 31% to $741million.

Its financial performance was the result of record usage of the Kaspi.kz Super App, which reached 7.8 million Monthly Active Users (MAU), an increase of 72% from the six months ending 30 June 2019. 

Looking at returns, Kaspi plans to pay dividends annually, amounting to at least 50% of its net income calculated under international financial reporting standards. 

Last month Reuters reported that Kaspi may relaunch plans to list in London following Yandex's planned purchase of Russian online bank Tinkoff  for $5.5 billion which establishes a comparative valuation. 
Kaspi previously aimed to raise between $500 million and $700 million from the London share sale it shelved last year.

Presently it plans to expanding into new businesses, including online travel, in nearby Central Asian countries and the Caucasus region. 

Morgan Stanley & Co. International PLC and Citigroup Global Markets Ltd. are acting as joint global coordinators on the offering and, along with Renaissance Capital, as joint bookrunners. 

Kaspi.kz’s listing would have been the first in London by a Central Asian country  since Kazatomprom, the world’s largest uranium producer, two year ago.