In a sign of growing uncertainty in sections of the global fintech market, a Kazakhstan-based payments startup has pulled its plan to float on the London Stock Exchange
Kaspi, an online payments platform, filed its initial public offering (IPO) registration less than a month ago but has now issued a statement postponing the plan citing "unfavourable and uncertain market conditions".
The flotation was intended to help Kaspi raise funds via the selling of shares through a secondary offering and it was seeking a colossal $5bn valuation.
The postponement mirrors the recent action of WeWork, the property startup backed by fintech investor SoftBank which had planned an IPO in New York last month but, after slashing the aimed valuation, then scrapped the IPO altogether.
Despite the shevling of the IPO, Kaspi's chairman, Mikhail Lomtadze, insisted that there was still strong investor interest in the company. "We are pleased with the very strong interest shown by investors and their very high level of engagement in the process," he said. "However, we’ve come to the decision that the timing is not the best at the current moment for an IPO.”
Kaspi has a strong base in its native Kazakhstan where it holds a significant market share with around 4.5m active users. It is listed on the Astana exchange in Kazakhstan and the London flotation was intended to help the firm break into the London market and tap into the greater liquidity on offer.