Saida Mirziyoyeva, head of the Presidential Administration of Uzbekistan, described the first international listing of the Uzbekistan National Investment Fund (UzNIF) on the London Stock Exchange as an event of 'deep symbolic significance' reflecting the transformation of the country's economy.
'There are moments when countries quietly change their course, and there are moments when the world begins to notice. Today is one such moment for Uzbekistan,' she said at the ceremony on May 18 in London.
According to her, the importance of the event lies not in the ceremony itself, but in that it reflects 'a deeper transformation in the way our economy thinks, works and interacts with the world.'
'Nine years ago, Uzbekistan was still a largely closed country. Today, we are building a competitive, investment-oriented economy integrated into the global economy,' Mirziyoyeva noted.
She emphasized that the initial public offering (IPO) of UzNIF shares is not only about raising capital, but also 'building trust in a new generation of Uzbekistan's institutions.'
'This fund brings together the most important companies of our economy — enterprises in energy, transport, finance and industry. And it reflects what today's Uzbekistan is: bold in pursuing its goals, serious about reforms, and increasingly confident in its place in the world,' the head of the Presidential Administration said.
Mirziyoyeva also announced that Uzbekistan is preparing new listings, expanding private sector participation, and establishing the Tashkent International Financial Centre.
'For us, not only growth but also its quality matters,' she added.
She expressed gratitude to Franklin Templeton, investors, the London Stock Exchange, and British partners for their support.
'Today, Uzbekistan comes to London not as a frontier market seeking to be discovered, but as a country consciously transforming its economic destiny. And we are only at the beginning of this journey,' Mirziyoyeva concluded.
Jenny Johnson, President and CEO of Franklin Templeton, called the IPO of the National Investment Fund a 'defining and historic milestone' for Uzbekistan and for the company as a trustee and fund manager.
'We are extremely proud to have successfully executed Uzbekistan's first international equity offering and brought the country into the spotlight of global investors,' she said.
According to Johnson, without the support of the Presidential Administration, the Ministry of Economy and Finance, and the National Agency for Prospective Projects, the success of the placement would not have been possible, 'especially in such a short time.'
She reported that global demand for the IPO exceeded $2.8 billion, and the order book was oversubscribed more than four times.
The head of Franklin Templeton also noted that this reflects 'strong confidence that the pace of reforms will be sustained in the coming years.'
Jenny Johnson stressed Franklin Templeton's intention to continue cooperation with the government of Uzbekistan in developing corporate governance at state-owned enterprises, strengthening business, and supporting the local capital market.
'Although we are celebrating this event in London today, UzNIF has also started trading on the Tashkent Stock Exchange. This is the largest domestic listing to date, allowing citizens of Uzbekistan to directly invest in their country's future,' she said.
Recall that within the IPO, the Ministry of Economy and Finance, as the sole shareholder, offered shares of UzNIF with a total nominal value of 1.56 trillion units in the form of ordinary shares and global depositary receipts (GDRs). This represented 31% of the fund's share capital, excluding GDRs that may be issued under the over-allotment option. One GDR is equivalent to 64,700 shares.
The total amount of funds raised, excluding GDRs that may be issued under the over-allotment option, was approximately $603.6 million. Including them, this amount could increase to $692 million, and the share of sold shares could rise to 35%.
This IPO became the largest in Uzbekistan's history. For comparison: during the IPO of car manufacturer UzAuto Motors in 2022, 1,383 applications were collected for a total of 56.9 billion soums, representing 29.1% of the total volume of offered shares. 'Uzbektelecom' raised 33.25 billion soums through an IPO.
As of December 31, 2023, the net asset value of the fund was $2.44 billion (later, following the IPO, the capitalization was $1.95 billion). The UzNIF portfolio includes minority stakes in 13 state-owned companies, including Uzbekistan Airways, 'Uzbektelecom', 'Uzbekhydroenergo', 'Uzsanoatqurilishbank', 'Uzbekinvest', and others.
As of December 31, 2023, the net asset value of the fund was $2.44 billion. The UzNIF portfolio includes minority stakes in 13 state-owned companies, including Uzbekistan Airways, 'Uzbektelecom', 'Uzbekhydroenergo', 'Uzsanoatqurilishbank', 'Uzbekinvest', and others.
UzNIF acts not only as a shareholder but also as a mechanism for preparing the public sector for the market. According to government plans, individual IPOs of the following six companies from the fund's portfolio are planned by the end of 2028.
Source: www.gazeta.uz