Kaspi.kz’s IPO and Its Impact on Kazakhstan’s Stock Market

Abstract

Liquidity, accompanied by institutional involvement and international visibility, has always been on the lower side when it comes to discussing the capital market of Kazakhstan. In 2020, an initial public offering by Kaspi.kz—the leading fintech and e-commerce platform from Kazakhstan—made a significant turn raising almost USD 1 billion via dual listing on the London Stock Exchange and Astana International Exchange. This paper will try to look at the Kaspi.kz IPO as a transformative event that took place for both the firm and the Kazakhstani capital market. Through the application of an event-study methodology, abnormal stock returns, trading activity, and post-IPO performance are determined against LSEG market data, financial statements of issuers, as well as domestic market indicators. Kaspi.kz did generate very high positive abnormal returns accompanied by acceleration in revenue and net income post-listing. This picture goes a long way in reflecting what investor confidence in the company’s digital ecosystem and operational model can do. Beyond firm-level analysis, the study shows that the IPO was able to act as a catalyst on a broader scale for market development in Kazakhstan. This event helped to improve general investor sentiment while increasing liquidity on AIX and apparently helping new brokerage account openings and subsequent listings which comprise major offerings like KazMunayGas. Essentially, the Kaspi.kz IPO proves how the successful listing of a domestic technology leader can spearhead capital-market modernization, fast-track strengthening international credibility, and work on investment behaviour transformation in emerging markets.