Shares in LSE-listed Kazakh super-app Kaspi plummet as unrest continues

Quick Take

  • The share price of Kazakh super-app Kaspi dropped sharply to below $80 as the country experiences unrest. 
  • Kaspi, one of the most popular fintech firms in the country, went public on the London Stock Exchange in 2020 at a valuation of over $6 billion
advertisement

The share price of Kaspi, the LSE-listed fintech super-app used by around half of the Kazakh population, has fallen sharply as the country experiences a period of turbulence.

The stock hovered at $113.80 as markets opened on Wednesday but sharply dropped to as low as $71, before recovering slightly to above $80. At the time of writing, Kaspi's website was not accessible, likely due to widespread internet outages in the country. 

On Sunday, protests in Kazakhstan began when the government lifted a price cap on fuel. They have since intensified and, according to a BBC report, much of the anger is directed at former president Nursultan Nazarbayev, who has remained a powerful figure in the government since stepping down.

Kaspi made its mark in the country as a super-app offering the ability to pay bills, transfer money and pay retailers, becoming the country’s defacto payment system in the process. The company tapped into a population with a large unbanked but increasingly online population, with an average internet penetration rate of 79%. 

In October 2020, it surprised many market observers by going public in October 2020 at a $6 billion valuation. The net worth of its founders Vyacheslav Kim and Mikhail Lomtadze shot up to $2.5 billion and $2 billion respectively after the listing, which was the largest international tech IPO of 2020. 

The following month, Forbes reported on Kairat Satybaldy — the nephew of former president Nazarbayev and a leading figure in the ruling Nur Otan Party — and his relationship with the fintech. 

In 2017, according to Forbes, Satybaldy owned a 30% stake in Kaspi which he cashed out in 2019 after its first attempt to go public. Had he remained a controlling shareholder, as a politically powerful figure in Kazakhstan, the public listing would have likely drawn scrutiny from regulators. 


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

5 Steps to a Successful Crypto AML Program

As cryptocurrencies become increasingly mainstream, regulators, the media and policymakers are paying more attention to the financial crime risks associated with them. But what are the biggest compliance challenges crypto firms face, and what does a best practice AML program look like? 
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC

The TRON Ecosystem Thrives Amidst Market Chaos

TRON DAO has announced the launch of a $10 million incentive fund in light of recent events to support Terra developers migrating to the TRON ecosystem, including TRON’s EVM compatible cross-chain solution BitTorrent Chain (BTTC), which helps facilitate the seamless transfer of assets across mainstream public chains, including TRON, Ethereum, and BNB Chain. 
Read Full Story
Sponsored Post
More