Kazakhstan’s “Super App” Kaspi.KZ (KSPI proposed) set terms for its mega-IPO after the closing bell today – Tuesday, Jan. 16, 2024. Kaspi.KZ’s selling stockholders will offer 9.0 million American Depositary Shares (ADS) at $97.00 to raise $873 million. The mobile banking, payments and e-commerce app for Kazakhstani consumers, merchants and entrepreneurs plans to price its IPO on Thursday night, Jan. 18, 2024, to trade Friday, Jan. 19, on the NASDAQ.
Morgan Stanley, J.P. Morgan and Citigroup are the joint book-runners.
The company will have a valuation or a market cap of about $18.08 billion, based on the assumed IPO price of $97.00.
The fast filing and launch indicate the hunger that big banks have to get back in the IPO game after two slow years. Kaspi.KZ filed its F-1 on Dec. 28, 2023. This deal is one of a few new IPO filings in the past month that Wall Street pros had pegged as potential members of the billion-dollar club.
Kaspi.KZ’s IPO pushes the IPO Calendar this week above the billion-dollar line. IPO bankers aim to raise about $1.08 billion during the four-day work week, if all nine deals on the IPO Calendar get priced. (The U.S. stock market was closed on Monday, Jan. 15, 2024, for Martin Luther King, Jr., Day, the federal holiday that celebrates the birthday of the slain civil rights leader, The Rev. Dr. Martin Luther King, Jr.)
Selling stockholders are offering all of the shares in Kaspi.KZ’s IPO. The company is not offering any stock – and for that reason, it will not receive any IPO proceeds.
Kaspi.KZ says it is the largest payments, marketplace and FinTech ecosystem in Kazakhstan, according to the company’s investor relations website.
Kazakhstan, a former Soviet republic, is a Central Asian nation whose population was about 20 million in November 2023, according to the country’s Bureau of National Statistics.
Moving Money
Kaspi.KZ Super App for consumers is Kazakhstan’s most recognized consumer mobile app, according to KResearch. The Kazakhstani consumer mobile app had 13.5 million average monthly active users (“Average MAU”), as of Sept. 30, 2023.
“With the Kaspi.KZ Super App, consumers can shop online with fast, and in most cases free, e-Commerce and e-Grocery delivery, use m-Commerce to find and shop at local merchants, book travel and holidays with Kaspi Travel, pay with Kaspi QR throughout Kazakhstan, shop with our buy-now-pay-later (“BNPL”) products, pay their household bills and save for the future, among other services,” the prospectus says.
Consumers earn loyalty points through Kaspi Bonus, and those loyalty points can be applied toward future purchases and payments on the company’s Platforms, the prospectus says.
“With integrated Government Services, consumers can also access digital documents, including passports, renew their driving licenses, and transfer car ownership,” the prospectus says.
Serving Merchants
The company caters to merchants in Kazakhstan with its Kaspi Pay Super App.
“With the Kaspi Pay Super App, merchants can sell products and services online using e-Commerce or list their businesses and offers using m-Commerce, organize nationwide delivery by connecting to Kaspi Delivery Smart Logistics Platform, run product ad campaigns with Kaspi Advertising, participate in our promotional events and access merchant financing through our Fintech Platform,” the prospectus says.
“Merchants can also issue and instantly settle invoices, accept payments, pay suppliers and track their turnover, among other things,” the prospectus says. “Merchants also have access to Government Services, including tools to initially register their business, issue fiscal receipts for all types of payments, calculate and pay their taxes, and file tax reports. Kaspi Classifieds allows merchants to advertise their used and new goods, services and jobs to consumers.”
All this adds up to a healthy bottom line. Kaspi.KZ earned net income of $1.74 billion on revenue of $3.83 billion for the 12 months that ended Sept. 30, 2023, according to financial statements in the prospectus. The net income and revenue figures are presented in U.S. dollars, converted from Kazakhstan’s currency, the Tenge, according to the prospectus.
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