Freedom Holding Corp. Raises $300 Million Through Share Offering

Freedom Holding Corp. has completed an offering of more than 2.3 million shares at a price of $126.35 per share. The total proceeds amounted to approximately $300 million. The transaction involved exclusively investors who are not U.S. residents.

“We have always been a company that grows and generates value together with its clients. The funds raised through this offering will be directed toward the further development of our business and the international expansion of our ecosystem. I am confident that the digital infrastructure created by our team in Kazakhstan will be in demand and competitive across all regions where Freedom operates,” said Timur Turlov, founder and Chief Executive Officer of Freedom Holding Corp.

Results of 18 Years in the Market

Freedom Holding Corp. is an international fintech group whose shares are traded on Nasdaq under the ticker symbol FRHC. The company entered the U.S. stock market in 2019, when one share was priced at approximately $14.

Over 18 years, Freedom has evolved from a brokerage company into a major digital ecosystem in Central Asia. Today, the holding company operates in 22 countries, including European nations and the United States, while the combined audience of its services exceeds 14 million users. The company’s development story has also become a subject of study for MBA students at Stanford Graduate School of Business.

According to Timur Turlov, founder and CEO of the holding company, one of Freedom’s main competitive advantages has been the integration of financial, insurance and lifestyle services into a single ecosystem. In periods of instability, companies that can adapt quickly and turn crises into opportunities are the ones that succeed.

Public company status requires high standards of corporate governance and transparency. Freedom publishes expanded financial statements and undergoes regular regulatory reviews. Its annual Deloitte audit, which costs approximately $10 million, is conducted by a team of more than 120 specialists. In addition, the holding company is undergoing a comprehensive review by the U.S. Securities and Exchange Commission, which contributes to the continued development of its internal control and risk-management procedures.

In June, S&P Global Ratings affirmed Freedom Holding Corp.’s rating at “BB-” with a stable outlook. The ratings of Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC and Freedom Bank Kazakhstan JSC were upgraded from “B+” to “BB-.” The agency noted the strengthening of the group’s risk-management and compliance procedures.

What Is Driving the Holding Company’s Growth

In recent years, Freedom has shifted its focus from maximizing short-term profits to pursuing long-term growth and diversification. While the brokerage business generated most of the company’s revenue in 2022, the banking division, insurance business and lifestyle services now make a significant contribution.

One of the key examples is the transformation of a bank acquired in 2021 for $50 million. Within several years, its equity increased to nearly $500 million, while the number of clients exceeded 6 million. The bank became one of the most digitalized financial institutions in the region and ranked third in Kazakhstan by card transaction volume.

The combined revenue of the holding company’s other business segments is approaching $500 million. The turnover of its lifestyle services doubled over the year and reached $516 million. Freedom Travel accounts for approximately 30% of Kazakhstan’s airline ticket market, while the turnover of a ticketing service acquired during the pandemic increased to $87 million.

The company is also developing electronics and tire sales, lending, insurance products, media services and telecommunications infrastructure. A media platform launched last year offers content from Warner, Universal, Paramount, Sony and Disney. As part of the development of its telecommunications business, 220 base stations have already been built, while the holding company is preparing to enter the mobile communications market.

Billions of Dollars in AI Infrastructure Investment

Freedom’s proprietary artificial intelligence infrastructure is becoming one of the company’s main investment priorities. Revenue from its cloud business has reached $250 million and, according to company estimates, could eventually grow to $1 billion per year.

In 2025, the holding company signed a trilateral agreement that is expected to be converted into a $2 billion contract with NVIDIA to create the region’s largest AI cluster. Hundreds of millions of dollars in the company’s own funds have already been invested in the project. In early July, Freedom also signed memoranda with Citi providing for infrastructure financing.

Kazakhstan remains the primary location for developing and testing technologies that are subsequently expected to be scaled to other markets. Freedom is now expanding internationally not only with banking and brokerage products, but also with a ready-made digital ecosystem built around the extensive use of artificial intelligence.

In early July, the holding company received authorization to conduct banking activities in Türkiye. According to Timur Turlov, entering the Turkish market could more than double the company’s business. At the same time, Freedom is working to obtain a banking license in the European Union, primarily in France, and is considering markets in Asia and the Middle East.

The holding company’s strategic goal is to create a global ecosystem whose audience could eventually grow to 100 million users and, in the longer term, to one billion. International expansion, the development of digital services and large-scale investment in artificial intelligence are expected to serve as the foundations of this growth.