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The idiosyncrasies of Kaspi.kz's mega IPO

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Jan 22, 2024
Data: Renaissance Capital; Chart: Axios Visuals
Data: Renaissance Capital; Chart: Axios Visuals

Investors in Kazakhstani super app maker Kaspi.kz raised over $1 billion Friday in an upsized mega-IPO, with shares now hovering around their IPO price.

Why it matters: Some investors are taking this as a hopeful sign that the IPO window is wiggling open for mega tech listings, but not all, because Kaspi.kz is unique.

  • It's the second Kazakhstani company to list in a U.S. exchange, per Renaissance Capital.
  • The company posted net income of $1.3 billion in the nine months ending September 2023, more than double the figure from the same period a year earlier.
  • Revenue also more than doubled, to $2.8 billion.

The big picture: Companies and investors want the market to be back; exits, after all, mean actual returns.

  • According to data from Renaissance Capital, 10 companies have filed to raise more than $100 million via IPO so far in 2024 — more than seven of the past 10 years, and behind only 2014, 2021, and 2022.
  • Other IPO hopefuls this year reportedly include Reddit and ServiceTitan.

Of note: Kaspi raised no primary capital from the IPO, with CEO Mikheil Lomtadze, co-founder Vyacheslav Kim, and Asia Equity Partners selling shares in the offering.

Bottom line: A stronger signal for the market would come from, say, a U.S. tech company acting as an easier comparison.

  • A rate cut from the Federal Reserve would also help.
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