Case 13 Freedom Holding Corporation

Freedom Holding Corp. (FRHC) is a corporation originally incorporated in the State of Utah in the United States in the year 1981. FRHC is a holding company that owns and operates diversified financial services businesses through its various subsidiaries. The subsidiaries undertake operations related to securities dealing, market making, retail securities brokerage, investment research, investment banking, and underwriting services. In 2022, FRHC completed the acquisition of two insurance companies operating in Kazakhstan. FRHC provides a comprehensive range of securities brokerage services to individuals, businesses, and financial institutions. The brokerage services offered include securities trading, margin lending, investment research, and investor education tools. The securities brokerages segment also involve in proprietary investment activities, and facilitates repurchase and reverse repurchase agreements. With respect to retail brokerage, FRHC offers full-service brokerage services which cover investment alternates such as exchange traded, over-the-counter equity and debt securities, money market instruments, options and futures contracts, government bonds, and mutual funds. The total revenue and net income grew by 104% and 259% on average basis during the period 2018–2021. The 5-year holding period return for Freedom Holding was exponential at 18,972% while for S&P 500 and S&P diversified financials, the 5-year holding period was 110% and 106%, respectively.