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Quick Look: Kaspi.KZ is now listed here in the US. The ADS was priced at $92. Their industry-leading margins and growth suggest a higher valuation.

Is the future a super app? $KSPI is a "super app" in Kazakhstan (KZ). The company just completed a roadshow for their US listing, which we consider an IPO. They will remain listed on the LSE and in Kazakhstan.

The deal size was 11.3M shares at $92/ADS. They will trade today as $KSPI. The shoe should be exercised, resulting in another 1.7M shares coming to market.

It's a tier 1 deal with Morgan Stanley, JPM, and Citi running the books. It's a 100% secondary offering, including shares from the co-founder and CEO Mikheil Lomtadze.

They own the KZ market. The deal reminds me of Yandex $YNDX, the "Google and Amazon of Russia" when they did their IPO. Yandex performed very well for investors until the Russian invasion of Ukraine suspended trading.

This is more like Tencent or Alibaba in our more modern app-driven world. Coupang $CPNG and Mercado Libre $MELI also spring to mind.

As a super app, the company provides a suite of applications and cloud services for consumers and merchants, including payments, a marketplace, and financing. Their consumer users average 68 transactions per month.

The company has very strong growth and is very profitable. In round numbers, it is $4B in revenue and close to $2B in net income.

Kazakhstan is a bigger country than many US investors might realize. It dominates the economy of Central Asia and is large in terms of area (9th largest in the world) with a population of 20 million. It has some history as a democratic, secular, constitutional republic but is now considered an authoritarian regime, as is the popular geopolitical trend.

Kaspi will grow with the economy and also benefit from some the secular tailwind of ecommerce in more applications including grocery, travel, and auto.

Valuation and Stock Conclusion

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