Cyprus-based Freedom24 key to European success

S&P Global Ratings has upgraded the long-term issuer credit rating of Freedom Finance Europe Ltd., which operates under the Freedom24 brand, from ‘B’ to ‘B+’.

According to the announcement, this improvement reflects a broader enhancement of ratings for Freedom Holding Corp.’s subsidiaries, with Freedom Finance JSC, Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC also receiving upgrades to ‘B+’.

Meanwhile, the short-term ratings of all four subsidiaries were affirmed at ‘B’, and the holding company’s long-term credit rating was maintained at ‘B-’.

S&P Global Ratings highlighted the group’s strong position as the largest retail brokerage franchise in Kazakhstan, a growing presence in Europe, and a diversified business portfolio that includes banking and insurance operations in Kazakhstan.

“We expect that targeted moderate balance-sheet growth coupled with strong earnings diversified by sources and geographies will support the group’s strong capitalisation,” the agency stated.

The agency also praised Freedom Holding for its efforts to enhance risk management and compliance across its subsidiaries in various jurisdictions.

The stable outlook for Freedom Holding and its core operating units reflects expectations of steady business and financial profiles over the next 12 months.

These expectations are supported by reduced economic and industry risks in Kazakhstan and improved regulatory oversight.

Cyprus-based Freedom24 plays key role

Meanwhile, the company noted that Freedom24, based in Cyprus, is instrumental in the holding’s success in Europe, reinforcing Cyprus’s status as a financial hub.

In a statement, Evgenii Tiapkin, Executive Director at Freedom24, emphasised the significance of the milestone.

“This highlights our commitment to fostering innovation and trust in every market we operate in,” he said.

He also said that “the Cypriot ecosystem provides an environment for growth and collaboration, enabling us to deliver value to our clients while contributing to the local economy”.

“As we continue to expand in Europe, we remain dedicated to the highest standards of compliance and risk management,” he added.

Market performance reflects investor confidence

It should be noted that the ratings upgrade coincides with Freedom Holding Corp.’s strong market performance.

At the close of trading on December 10, 2024, the company’s stock (FRHC) reached USD 129.24, pushing its market capitalisation to over $7.83 billion.

This represents a remarkable 60 per cent increase since the start of the year.

Since its Nasdaq listing five years ago, the stock has surged nearly ninefold, showcasing sustained investor confidence and the company’s robust growth trajectory.

Freedom Holding Corp. surpasses $8 billion market capitalisation

Meanwhile, on Friday, Freedom Holding Corp. reached a new milestone as its market capitalisation exceeded $8 billion during trading on December 12.

This achievement comes on the heels of its November milestone, where the company crossed the $7 billion mark, marking a rapid ascent fuelled by a surging stock price and strong investor confidence.

Listed on NASDAQ under the ticker FRHC, the company’s stock peaked at $133.92 during recent trading, underscoring its growing influence in the financial sector.

“Looking ahead, Freedom Holding Corp. is planning for expansion into the Middle East, with plans to enter several emerging countries in 2025,” the company said.

It added that “these efforts align with the company’s views to bring accessible and innovative financial solutions to new markets”.

“This growth complements its well-established presence in Europe and Kazakhstan, further reinforcing its position among global financial leaders,” the company concluded.