Joint Stock Company Kaspi.kz Files for 9M Share IPO in the United States
Kaspi.kz, a joint-stock company based in Kazakhstan, has announced its intention to conduct an initial public offering (IPO) in the United States. The company has filed with the relevant authorities to offer 9 million American depositary shares (ADSs), with each ADS representing one common share of Kaspi.kz. The IPO will allow the company to expand its investor base and raise capital to support its growth plans.
Kaspi.kz is a well-known and established entity in the Kazakhstan financial market, and the IPO will provide an opportunity for investors to participate in its future success. The company is backed by Mr. Vyacheslav Kim, Mr. Mikheil Lomtadze, and Asia Equity Partners Limited, who are the selling shareholders in this offering.
Trading Price of Regulation S GDRs Expected to Determine IPO Price
The IPO price for Kaspi.kz’s ADSs is expected to be determined based on the trading price of the Regulation S global depositary receipts (GDRs) representing its common shares on the London Stock Exchange (LSE). On January 16, 2024, the closing price of the Regulation S GDRs on the LSE was $97.00 per GDR. The company anticipates that the initial public offering price will be similar to this trading price. The exact IPO price will be determined through a bookbuilding process and the closing price of the Regulation S GDRs on the pricing date of the offering.
Kaspi.kz will not receive any proceeds from the sale of ADSs by the selling shareholders in this offering. Instead, the IPO will provide an opportunity for the selling shareholders to monetize their investments while expanding the company’s shareholder base.
Kaspi.kz Applies for Listing of ADSs on Nasdaq Global Select Market
Kaspi.kz has applied to have its ADSs listed on the Nasdaq Global Select Market under the symbol “KSPI.” This listing will provide increased visibility and liquidity for the company’s securities in the U.S. market. Prior to this offering, there has been no public market for the ADSs. However, since 2020, Regulation S GDRs and Rule 144A GDRs representing Kaspi.kz’s common shares have been listed and traded on the LSE under the symbols “KSPI” and “80TE,” respectively.
The listing on Nasdaq will open up new avenues for U.S.-based investors to access Kaspi.kz’s securities and participate in its growth story. It will also enhance the company’s reputation and standing as a global player in the financial services industry.
Redesignation of Regulation S GDRs to ADSs to Expand Market Access
As part of the IPO process, Kaspi.kz intends to redesignate its outstanding Regulation S GDRs as ADSs. Currently, a portion of the Regulation S GDRs are listed and traded on the LSE, the Kazakhstan Stock Exchange (KASE), and the Astana International Exchange (AIX). Upon completion of the offering, all the outstanding Regulation S GDRs will be redesignated as ADSs. This will result in a total of 186,360,876 ADSs outstanding, which includes the ADSs being offered in the IPO. The ADSs will then be traded on Nasdaq, the LSE, KASE, and AIX.
The redesignation of the GDRs to ADSs will expand market access for Kaspi.kz’s securities and facilitate trading in U.S. dollars. It will provide greater flexibility to investors and enable them to buy and sell the company’s securities in various international markets.
Underwriters may Exercise Option to Purchase Additional ADSs in IPO
The underwriters of Kaspi.kz’s IPO have the option to purchase up to an additional 1,350,000 ADSs from the selling shareholders. This option can be exercised on a pro rata basis, at the public offering price, less the underwriting discount, for a period of 30 days after the date of the prospectus.
The exercise of this option would provide further liquidity to the IPO and potentially increase the capital raised by the selling shareholders. It would also reflect the strong demand for Kaspi.kz’s securities and the confidence of the underwriters in the company’s growth prospects.
In conclusion, Kaspi.kz’s IPO in the United States presents an exciting opportunity for investors to participate in the growth and success of a well-established financial institution. The IPO price will be determined based on the trading price of the Regulation S GDRs on the LSE, and the company has applied for a listing of its ADSs on Nasdaq. The redesignation of the Regulation S GDRs to ADSs will expand market access for investors, and the underwriters have the option to purchase additional ADSs, providing further liquidity to the offering. Overall, this IPO marks an important milestone for Kaspi.kz as it aims to strengthen its position in the global financial markets.
Analyst comment
Positive news: Kaspi.kz, a well-known financial institution, has filed for a 9M share IPO in the US. The IPO will expand the company’s investor base and raise capital for growth. The IPO price is expected to be determined based on the trading price of Regulation S GDRs, providing an opportunity for investors to participate in the company’s future success. Kaspi.kz has also applied for a listing on Nasdaq, increasing visibility and liquidity. The redesignation of GDRs to ADSs will expand market access, and underwriters have the option to purchase additional ADSs, reflecting strong demand.
