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Freedom Holding

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Freedom Holding Corp.
Company typeLLC
Nasdaq: FRHC
IndustryDiversified investments
Founded2008; 16 years ago (2008)
FounderTimur Turlov
Headquarters
Almaty
,
Kazakhstan
Area served
Europe, Central Asia, U.S.
RevenueUS$ 214,548 million (for the three months ended 31 December 2022)
US$ 566,7 million (for the nine months ended 31 December 2022).[1]
US$ $62,4 million (for the three months ended 31 December 2022)
US$ $148.7 million (for the nine months ended 31 December 2022)[1]
Total assetsUS$ 5.4 billion (as of December 31, 2022)[1]
Total equityUS$ 682.3 million (as of December 31, 2022)[1]
WebsiteFreedom Holding Corp Freedom Broker Freedom Finance EuropeFreedom Lithuania

Freedom Holding Corp.[2] is an investment conglomerate registered in Nevada, USA. The company provides a range of services in retail financial securities brokerage and trading, asset management, capital markets, investment research and counseling, investment banking and underwriting services, mortgages, insurance, and consumer banking. Its main area of focus is in the American stock market, as well as the markets of Central Asia, mainly Kazakhstan.[3]

It provides access to trading on the Kazakhstani exchange KASE, the Astana International Exchange (AIX), as well as on the American exchanges NYSE, NASDAQ, CBOE, CME, AMEX, and the European stock exchanges LSE and Euronext.[3]

The headquarter is located in Almaty, Kazakhstan.[4]

Freedom Holdings Corp. owns the Kazakh bank Freedom Finance[5] and Kazakhstani broker Freedom Finance JSC with offices in 16 cities in Kazakhstan, 8 cities in Uzbekistan, and one office in Kyrgyzstan.[6]

History

[edit]

The company was founded in 2008 by Timur Turlov.[7]

In 2014 the company arranged the listing of Bank of America stocks on KASE.[8]

In 2015 the Company became a market maker for stocks of the national power operator of Kazakhstan, KEGOC,[9] and in 2016 it carried out an IPO for Aktobe Metalware Plant JSC, which holds 70% of the metalwork market in Kazakhstan.[10]

In 2017 the Company acquired one of its competitors, the Kazakhstani broker Asyl-Invest.[11]

As of May 2017 the Company was a market maker for 12 securities: KEGOC, BAST, Aktobe Metalware Plant JSC, Bank of America, ETF S&P 500, along with major Russian bluechips like Aeroflot, Gazprom, Rostelecom, Magnit, Uralkali.[12]

In 2015, Freedom Finance passed under control of Freedom Holding Corp. (formerly BMB Munai, founded in 1981 in Nevada), with Timur Turlov becoming the majority shareholder of Freedom Holding Corp.[13]

In July 2017 Freedom Finance purchased the Ukrainian trader Ukranet.[14] Thus, the Ukrainian company is affiliated with the American holding Freedom Holding Corp.[15]

In 2018, Freedom Finance entered the Uzbekistani securities market, establishing offices in 8 cities across the country. In the following year, the company has done several IPOs and SPOs for local manufacturing companies.

In October, 2019 Freedom Holding Corp. has been approved for listing on The Nasdaq Capital Market under the "FRHC." symbol , therefore marking company's IPO.[16]

In June 2020 Freedom Holdings acquired the Russian stock broker and financial company Zerich Capital Management after it was approved by the Russian Federal Antimonopoly Service. Freedom said it would integrate the business into its existing Russian holdings.[17] That same year the company acquired а Kazakh bank – Bank Kassa Nova JSC, the name of the bank was later changed to "Bank Freedom Finance Kazakhstan" JSC.[18][19]

In 2021 Freedom Holding Corp. completed acquisition of american broker Prime Executions, Inc. The acquisition marked the company's initial entry into the U.S. markets.[20]

In 2021 Freedom Finance Europe received direct membership in Euroclear.[21]

In 2022, the holding company changed its auditor from WSRP and started working with Deloitte a "Big Four" accounting firm.[22]

In October 2022, Freedom Holding Corp. announced withdrawal from Russia by selling its assets to the local management.[23] The company has finalised its withdrawal from Russia by February 2023.[24]

April 24, 2023 Freedom Holding Corp. announced the acquisition of 100% shares in Aviata.kz and Chocotravel services from ChocoFamily Holding. It is planned to complete the purchase by the end of the year. The transaction amount is $32.3 million.[25]

In August 2023, Hindenburg Research released a report on Freedom Finance.

In August 2023, S&P placed the ratings of Freedom Holding and its brokerage and banking subsidiaries on CreditWatch with a negative outlook. Including due to the provision of services to individuals and companies under US, EU and UK sanctions. The group will remain under observation for 90 days.[26]

JSC "Freedom" plans to open a subsidiary in Tajikistan, the authorized capital of which will be fully owned by the holding. The decision was made and made public in mid-January.[27]

Operations

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Holding

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The main specialization of the overall company is the American stock market where it provides direct access to trading on the major USA stock exchange: NYSE, NASDAQ, CBOE, CME, AMEX, as well European exchanges LSE and Euronext.

Its main areas of operation are brokerage services, market making activities, securities trust management, depository operation, and internet trading. The company runs its own web investment platform, Tradernet under Freedom24 brand. The company also states that one of their key business development strategies is mergers and acquisitions.[28]

The company are offers webinars, seminars, distant and resident courses in trading along with their professional services.

In 2021, Freedom Holding Corp. was named as the winner in two categories of the annual International Finance Awards – "Most Innovative Securities Brokerage Company – Kazakhstan 2021" and "Best Research House – Kazakhstan 2021."[29]

In June 2022, the company announced a 41% growth in client accounts and a 60% increase in revenue compared to the previous figures.

Kazakh bank Freedom Finance JSC, Kazakh brokers Bank Freedom Finance Kazakhstan JSC and Freedom Finance Global PLC, and Freedom Finance Europe Ltd. have long-term credit ratings at B/B from S&P Global Ratings (2023).[30] Since January 2015, the company has been ranked first on the Kazakhstan stock exchange members activity in the sector of "Share securities".[31]

The company’s head office is located in Almaty, Kazakhstan. The company also has representative offices operating in 15 countries, including Cyprus, the United States, Uzbekistan, the United Kingdom, and Germany.[4]

In February 2023, the company announced that it had agreed to acquire the American investment bank Maxim Group LLC and its subsidiary Maxim Financial Advisors for $400 million.[32][33]

In March 2023, the agency S&P Global Ratings reaffirmed the long-term ratings of Freedom Holding Corp. at the "B−" level with a "stable" outlook.[34]

In 2023, Freedom Holding Corp. completed the acquisition of LD Micro, a conference platform for small-cap companies, formerly owned by SRAX.[35]

Freedom Broker

[edit]

Since 2021, Freedom Broker (Kazakhstan) has been an official market maker for 72 securities listed on KASE and six securities listed on the Astana International Exchange. The company introduced stocks of global companies such as Apple Inc., Facebook Inc., Microsoft Corporation, Starbucks Corporation, Ford Motor Company, The Coca-Cola Company, and Nike Inc. to the Kazakhstani market.[36][37]

In 2013, Freedom Finance acquired AO Seven Rivers Capital, which had been operating in the securities market since 2006.[38]

In 2017, AO Asyl-Invest, a Kazakhstani broker, merged with AO Freedom Finance, making it the largest securities broker in Kazakhstan.[38] [39]

According to Cbonds, Freedom Finance ranked first among organizers of placements of Kazakhstani bonds for nine months of 2021 with a market share of 44.5%. It also ranked first among organizers of market placements with a total market share of 50.6%. Since its founding, the company has opened 77,500 accounts.[36]

In 2022, the broker's market share accounted for 60-70% in terms of volumes and the number of clients. In the same year, the broker obtained a Qualified Foreign Investor (QFI) certificate in China.[37]

The company's revenue in 2022 amounted to KZT 72,908,201 thousand, with a net profit of KZT 32,400,758 thousand. The net assets of the company as of September 30, 2022, reached KZT 134,128,934 thousand. The trading and investment income of Freedom Broker in 2022 amounted to KZT 57,185,171 thousand, including a positive difference between income and expenses from financial instrument operations of KZT 22,716,728 thousand, interest income of KZT 45,384,832 thousand, and a positive difference between income and expenses from foreign currency operations of KZT 6,556,773 thousand.[40]

Bank Freedom Finance Kazakhstan

[edit]

Bank Freedom Finance Kazakhstan offers products such as multi-currency and investment cards, online lending, and digital mortgages. In 2022, the bank had a market share of 58% in the online lending niche.[41][42] The bank was established in 2020 through the acquisition and renaming of KassaNova Bank.[36][42]

Freedom Finance Global

[edit]

Freedom Finance Global is a brokerage company registered in Kazakhstan in 2020.[37][36] It holds a license from the Financial Services Regulation Committee to provide access to international financial markets (NYSE/NASDAQ, London Stock Exchange, SPB Exchange, HKEX) and exclusive access to IPOs. By the end of 2021, the broker had opened over 27,000 accounts and served nearly 60,000 clients in 2022.[36][37]

Freedom Finance Insurance

[edit]

Freedom Finance Insurance, formerly known as Trust Insurance, was established at the end of 2018 and has been operating in the Kazakhstan market since 2009.[43] The company introduced technology for special insurance terminals and launched online policy transfer services. [44][45] In January 2020, Freedom Finance Insurance launched online car insurance against accidents.[46] In terms of assets, the company ranked eighth in 2021, with a 87% increase compared to the previous year. In 2022, the holding acquired AO London-Almaty Insurance Company, which was later merged with AO SK Freedom Finance Insurance.[43][47][48][49]

Freedom Finance Europe Ltd.

[edit]

Freedom Finance Europe Ltd. obtained direct membership in the international central securities depository Euroclear in 2021, expanding its range of operational, settlement, and depository services for clients in the European, UK, and US markets.[50][51][52]

Financial Performance

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As of the end of 2022, the group's assets amounted to $5,3 million, total liabilities were $4,7 million, and the shareholder capital was $682,000. The market capitalization of the company as of April 6, 2023, was $4,165 billion, with a share price of $69,95 per share.[1][53]

References

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  1. ^ a b c d e United States Securities And Exchange Commission Freedom Holding Corp. 31.03.2021
  2. ^ "OTC Markets | Official site of OTCQX, OTCQB and Pink Markets". OTC Markets Group. Retrieved 2020-10-11.
  3. ^ a b Bloomberg|Company Overview of Freedom Finance Investment Company
  4. ^ a b "Freedom Holding закрыла сделку по продаже российских активов". Interfax (in Russian). 2023-02-28. Retrieved 2023-06-21.
  5. ^ "Freedom Holding Corp. Agrees to Acquire Bank Kassa Nova". Freedom Holding Corp. Retrieved 2023-05-11.
  6. ^ "KFF SIGNS MEMORANDUM WITH FREEDOM FINANCE JSC". Kazakhstan Football Federation. 2022-09-16.
  7. ^ "Timur Turlov: how to build a CIS financial services powerhouse from Kazakhstan". The Qazaqstan Monitor. 2021-11-25.
  8. ^ "Opening of trading in ordinary shares US0605051046 (US_BAC_) of Bank of America Corporation (US) adjourned at admittance initiator's request - Kazakhstan Stock Exchange (KASE)". Kazakhstan Stock Exchange. Retrieved 2023-05-11.
  9. ^ "From May 3, Freedom Finance assigned status of market-maker on KASE for bonds KZ2C00006658 (KEGCb3) of KEGOC". Kazakhstan Stock Exchange. Retrieved 2023-05-11.
  10. ^ "Freedom Finance as of July 22 assigned status of market-maker on KASE for common shares KZ1C60260011 (KZ1C00001288, AKZM) of Aktobe Metalware Plant". Kazakhstan Stock Exchange. Retrieved 2023-05-11.
  11. ^ "Freedom Holding Corp. Announces Acquisition of Asyl-Invest JSC". Freedom Holding Corp. Retrieved 2023-05-11.
  12. ^ ""Фридом Финанс" вывела российские "голубые фишки" на KASE". Forbes (in Russian).
  13. ^ Banking and Finance. Freedom Holding Corp. (FRHC) InvestorHub
  14. ^ Freedom finance поглотила финкомпанию “Укранет” Инвестиционный портал InVenture 21.07.17
  15. ^ United States Securities And Exchange Commission Quarterly Report 30.09.2017
  16. ^ "Freedom Holding Corp. Announces Uplisting to The Nasdaq Capital Market". Freedom Holding Corp. Retrieved 2023-05-11.
  17. ^ "Freedom Holding Corp. Acquires Russian Brokerage Firm". Yahoo finance. July 6, 2020.
  18. ^ "Freedom Holding Corp. Agrees to Acquire Bank Kassa Nova". Securities and Exchange Commission (US). Retrieved 2022-04-01.
  19. ^ "Freedom Holding Corp. Acquires the Kassa Nova Bank". Kursiv Media (KZ). 2020-08-04. Retrieved 2022-04-01.
  20. ^ "Freedom Holding Corp. Agrees to Acquire MKM Partners LLC". Bloomberg. Retrieved 2022-04-01.
  21. ^ "Freedom Finance Europe receives direct membership in Euroclear". Bloomberg. Retrieved 2022-04-01.
  22. ^ Данил Тумашевич (2022-10-19). "Freedom Holding Corp. сменил аудитора с WSRP на Deloitte". Kursiv (KZ) (in Russian). Retrieved 2023-06-21.
  23. ^ "Freedom Holding Corp. Enters into Agreement to Sell Russian Businesses". Freedom Holding Corp. Retrieved 2023-04-24.
  24. ^ "Freedom Holding Corp. Russian Divestiture Approved and Completed". Yahoo Finance. Retrieved 2023-04-24.
  25. ^ "Acquisition of Aviata and Chocotravel Will Bolster Online Services". Stock Titan. 2023-04-25.
  26. ^ "Freedom Holding Corp. And Subsidiaries Put On CreditWatch Negative On Possible Governance And Risk Management Failings". S&P Global. 2023-08-24.
  27. ^ "The size of the authorized capital is 100,000,000 common shares, the price of each share is 1 somoni. This is approximately 1/8th of the bank's authorized capital in the Republic of Kazakhstan". Bank.kz. 2024-01-31./
  28. ^ "Идем ва-банк: Один из крупнейших брокеров СНГ приобрел старейшую инвесткомпанию России". Известия (in Russian). 2020-07-13. Retrieved 2023-06-21.
  29. ^ Kursiv Media (2021-12-21). "Freedom Holding получил три международные награды". Kursiv Media Казахстан (in Russian). Retrieved 2023-06-21.
  30. ^ "S&P Global Ratings". S&P. Retrieved 2023-04-24.
  31. ^ "Activity Ranking". KASE. Retrieved 2023-05-11.
  32. ^ Алексей Афонский (2023-03-06). "Freedom Holding купила организатора конференций LD Micro". Kursiv (KZ) (in Russian). Retrieved 2023-06-21.
  33. ^ "Freedom Holding купит американский инвестбанк за $400 млн". РБК (in Russian). 2023-02-17. Retrieved 2023-06-21.
  34. ^ "S&P повысило рейтинг ряда компаний Freedom Holding после продажи группой активов в РФ". Interfax (in Russian). 2023-03-07. Retrieved 2023-06-21.
  35. ^ Ангелина Румянцева (2023-03-06). "Freedom Holding покупает конференц-платформу LD Micro". Frank Media (in Russian). Retrieved 2023-06-21.
  36. ^ a b c d e Ольга Фоминских (2021-12-21). "Как будет выглядеть экосистема Freedom Finance в Казахстане". Kursiv (KZ) (in Russian). Retrieved 2023-06-21.
  37. ^ a b c d "Цифровизация и трансформация: Как развивается Freedom Holding Corp. в Казахстане". Novaya Gazeta (in Russian). Retrieved 2023-06-21.
  38. ^ a b "АО "Фридом Финанс"". Forbes (in Russian). Retrieved 2023-06-21.
  39. ^ Арман Бурханов (2018-04-18). "Сергей Гришин: "Главный актив любой компании – это человеческий капитал"". Kursiv (KZ) (in Russian). Retrieved 2023-06-21.
  40. ^ "АО "Фридом Финанс" (FFIN)". KASE (in Russian). Retrieved 2023-06-21.
  41. ^ "Цифровые продукты Freedom Bank презентовали главе государства". Forbes (in Russian). 2022-09-29. Retrieved 2023-06-21.
  42. ^ a b "Как строится финансовая экосистема сегодня". Российская газета (in Russian). 2022-10-18. Retrieved 2023-06-21.
  43. ^ a b "АО "СК «Freedom Insurance" — Forbes Казахстан". Forbes (in Russian). Retrieved 2023-06-21.
  44. ^ "Казахстанские автовладельцы смогут купить полис обязательного автострахования в специальных терминалах". Freedom Insurance (in Russian). Retrieved 2023-06-21.
  45. ^ "Переоформить или расторгнуть полис онлайн – легко!". Freedom Insurance (in Russian). Retrieved 2023-06-21.
  46. ^ "Freedom Finance Insurance запускает онлайн-страхование автомобилей от ДТП". Freedom Insurance (in Russian). Retrieved 2023-06-21.
  47. ^ "Фридом Финанс покупает страховую компанию "Лондон-Алматы"". Капитал.кз (in Russian). 2022-08-27. Retrieved 2023-06-21.
  48. ^ Алия Жанибек (2022-08-27). ""Фридом Финанс" покупает компанию "Лондон-Алматы"". Forbes. Retrieved 2023-06-21.
  49. ^ "Присоединение СК "Лондон-Алматы"". Freedom Insurance (in Russian). Retrieved 2023-06-21.
  50. ^ "Freedom Finance Europe получила прямое членство в Euroclear". Expert (in Russian). Retrieved 2023-06-21.
  51. ^ "Freedom Finance Europe получила прямое членство в Euroclear". Kommersant (in Russian). 2021-10-08. Retrieved 2023-06-21.
  52. ^ "Freedom Finance Europe получила прямое членство в Euroclear". БИЗНЕС Online (in Russian). 2021-10-11. Retrieved 2023-06-21.
  53. ^ "FRHC: Freedom Holding Corp/NV Stock Price Quote". Bloomberg. Retrieved 2023-06-21.
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