Key facts
- UzNIF's dual IPO on the London and Tashkent stock exchanges raised nearly $700 million.
- The offering attracted over $2.8 billion in investor demand.
- Investors gained exposure to 13 Uzbek state-owned companies across energy, telecommunications, transport, and banking.
- The fund is managed by Franklin Templeton.
- The IPO is intended to improve corporate governance and transparency in the participating companies.
Uzbekistan's National Investment Fund (UzNIF) has successfully completed a dual initial public offering on the London and Tashkent stock exchanges, raising nearly $700 million and attracting over $2.8 billion in investor demand. This landmark transaction marks the first time international investors have acquired stakes in some of Uzbekistan's largest state-owned companies.
The fund, established by presidential decree in August 2024, holds minority stakes in 13 state-owned enterprises operating across key sectors including energy, telecommunications, transport, and banking. The structure, managed by Franklin Templeton, allows investors to gain exposure to a portfolio of these companies through a single investment vehicle.
Officials and market participants emphasized that the IPO's significance extends beyond capital raising, focusing on strengthening institutions and deepening international engagement. Saida Mirziyoyeva, Head of the Presidential Administration, stated the IPO is about building trust in a new generation of Uzbek institutions. Quinn Martin, President of investment firm Bluestone, highlighted that over 150 funds allocated shares will now participate in the governance and oversight of these companies, demanding commercially viable operations.
Economist Bekzod Khashimov noted that the primary goal is to improve the governance of state-owned corporations, as public listing necessitates regulation, transparency, and governance practices that limit state interference. Jenny Johnson, CEO of Franklin Templeton, affirmed the firm's commitment to promoting good governance and building sustainable businesses. Deputy Minister of Economy and Finance Khurshed Mustafoev added that the fund aims to introduce internationally recognized governance standards, preparing companies for future private sector participation.
The transaction is also viewed as a crucial step in developing Uzbekistan's capital markets, which have historically relied more on state and bank financing. Fayzulla Tashov, Chairman of the Republican Stock Exchange “Toshkent”, stated the dual listing demonstrates the market's readiness for integration with global financial centers. The IPO also provided an opportunity for approximately 4,700 domestic retail investors to participate directly in major state-linked companies.
With Uzbekistan's economy growing and its population nearing 40 million, the country is attracting interest from frontier market investors. Dmitriy Abbasov of Avesta Investment Group noted the demand reflects global belief in Uzbekistan's future, with Martin suggesting this IPO could be a catalyst for six to seven more in the coming years.