Company Overview

Freedom Holding Corp. (FRHC) is a US-based corporation that owns several operating subsidiaries engaged in the securities industry, primarily in Central Asia. Registered in Nevada, USA, it has emerged as a significant player in the global financial services sector, offering a comprehensive range of investment and banking solutions.

Business Overview

Freedom Holding Corp., through its subsidiaries, provides a wide array of financial services. These include securities brokerage, securities dealing, market making, investment research, investment counseling, retail and commercial banking, and insurance products. The company facilitates retail financial securities brokerage and trading, asset management, capital markets activities, investment research and counseling, investment banking and underwriting services, mortgages, insurance, banking, and other consumer services.

Core Services

The company offers a diverse portfolio of financial services including:

- Brokerage Services: Retail brokerage for exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, government bonds, and mutual funds.

- Banking Services: Commercial banking services, including payment cards, digital mortgages, digital business loans, digital auto loans, and Freedom Box (a package of payment acquiring services).

- Investment Banking: Capital raising solutions for corporate clients through initial public offerings (IPOs) and follow-on offerings; and debt capital markets solutions focused on structuring and distributing private and public debt.

- Technology Platform: Client transactions are facilitated through the holding's proprietary platform, Tradernet.

Global Operations and Market Presence

As of the end of 2024, Freedom Holding Corp. operates in 22 countries. While headquartered in Almaty, its offices span numerous locations, including the USA, Uzbekistan, Cyprus, the United Kingdom, and Germany.

Stock Exchange Access

Freedom Holding Corp. provides access to trading on multiple exchanges:

- Kazakhstani Exchanges: Kazakhstani Exchange (KASE), Astana International Exchange (AIX).

- American Exchanges: NYSE, NASDAQ, CBOE, CME, AMEX.

- European Exchanges: LSE, Euronext.

Through its subsidiary companies, FRHC is a professional participant on the Kazakhstan Stock Exchange (KASE), the Ukrainian Exchange, and the Republican Stock Exchange of Tashkent (UZSE). It is also a member of both NYSE and NASDAQ in the United States via its agency-only broker-dealer.

Market Making Activities

As of July 1, 2024, JSC Freedom Finance serves as the official market maker for 101 securities listed on the Kazakhstan Stock Exchange (KASE) and for 10 securities listed on the Astana International Exchange. The company has been instrumental in introducing global company stocks like Apple Inc., Facebook Inc., Microsoft Corporation, Starbucks Corporation, Ford Motor Company, The Coca-Cola Company, and Nike Inc. to the Kazakhstani market.

Stock Information and Trading

Freedom Holding Corp. was approved for listing on The Nasdaq Capital Market under the symbol "FRHC" in October 2019, marking its IPO. FRHC shares are included in several key indices:

- MSCI U.S. Small Cap 1750 Index

- MSCI U.S. Investable Market 2500 Index

- Kazakhstan's AIX Qazaq Index (with a 15% share)

Client Base and Market Position

By 2024, Freedom Holding Corp. had opened over 86,000 accounts since its inception. In the Kazakhstan market, the broker's market share stood at 60-70% in terms of trading volumes and the number of clients in 2022. As of 2024, Freedom Finance holds leading positions in KASE rankings across equity, debt, and government securities sectors, as well as in repo and currency swap operations.

Strategic Initiatives and Recent Developments

The company has actively pursued expansion through acquisitions and partnerships. In June 2020, Freedom Holdings acquired the Russian stock broker and financial company Zerich Capital Management after approval from the Russian Federal Antimonopoly Service. In 2018, Freedom Finance entered the Uzbekistani securities market, establishing offices in 8 cities. The following year, the company facilitated several IPOs and SPOs for local manufacturing companies.

Digital Ecosystem Development

In its primary market of Kazakhstan, Freedom is developing a comprehensive digital ecosystem that integrates banking, brokerage, and consumer services. The company also provides educational resources such as webinars, seminars, and trading courses, alongside its professional services.

Corporate Structure and Leadership

Freedom Holding Corp. operates under a holding company structure with numerous subsidiaries across various jurisdictions. In 2015, BMB Munai was acquired and subsequently renamed Freedom Holding Corp., which included Freedom Finance. Timur Turlov became the majority shareholder of Freedom Holding Corp.

Credit Rating and Financial Standing

In December 2024, the agency S&P Global Ratings reaffirmed the long-term ratings of Freedom Holding Corp. The company's financial performance has attracted considerable attention from major institutional investors and fund managers.

Freedom Holding Corp. represents a unique investment opportunity in the financial services sector, combining traditional brokerage and banking services with innovative technology solutions across emerging and developed markets. Its strategic focus on Central Asian markets, coupled with its presence in major global financial centers, positions it as a vital bridge between emerging market opportunities and international capital markets.