Kazakh fintech company Kaspi.kz JSC has announced its intention to delist its American Depositary Shares (ADSs) and Global Depositary Receipts (GDRs) from the London Stock Exchange (LSE), QazMonitor reports citing the company’s notice on the KASE.
Background: The ADSs and GDRs have been admitted to trading on the main market of the LSE since October 15, 2020. Recently, Kaspi.kz announced the completion of the initial public offering of ADSs in the US. Trading in these securities began on the Nasdaq Global Select Market on January 19, 2024.
Reasons for delisting: The company expects that the majority of ADS trading will now take place on Nasdaq, and the decision for delisting and cancellation of ADS and GDR trading in London is "due to the low volumes being traded on the main market of the LSE," the notice says. According to the company’s Q4 2023 financial statements, trading liquidity for its ADS on Nasdaq is twelve times higher than on the LSE. Because of this, Kaspi.kz plans to delist from the LSE to consolidate its liquidity.
Potential impact on ADS holders: “The cancellation of the London listing of the ADSs and Rule 144A GDRs is not expected to have an impact on ADS holders who hold their ADSs in brokerage accounts in The Depository Trust Company (“DTC”) for trading on Nasdaq,” reports the company.
Deadline: The company expects the delisting of the securities to take place no later than March 25, 2024.
