Uzbekistan's sovereign wealth fund plans double IPO

Uzbekistan wants to float its sovereign wealth fund UzNIF on the stock exchange. The fund is considering a simultaneous IPO in London and Tashkent. This would significantly increase the country's pace of reform on the capital market. UzNIF announced on April 9 that it intends to place both ordinary shares and global depositary receipts. This would allow the fund to target both international and domestic investors. A fund for privatization The state only founded UzNIF in August 2024 by presidential decree. Since then, the fund has been tasked with driving economic modernization, improving corporate governance and trimming state investments to capital market maturity. At the end of 2025, UzNIF held minority stakes in 13 companies. These come from the aviation, energy, telecommunications, utilities and banking sectors. The net assets of the portfolio amounted to around USD 2.44 billion. The Uzbek Ministry of Economy and Finance remains the sole owner. The proceeds from the IPO would flow directly to the state. The fund itself would not receive this money. Focus on infrastructure and utilities The portfolio has a strong focus on infrastructure-oriented sectors. The transportation sector accounts for the largest share at 32.4%. It is followed by power generation with 19.1%, telecommunications with 15.2%, utilities with 14.9% and banking with 13.4%. The most important holdings include Uzbekistan Airways, Uzbekhydroenergo, Uzbektelecom, the railroad infrastructure company and Sanoatqurilishbank. There are also electricity grid operators, gas suppliers, water suppliers and local public transport companies. Franklin Templeton prepares the fund A local subsidiary of Franklin Templeton manages the fund. The US asset manager manages around 1.74 trillion US dollars worldwide. In Uzbekistan, it aims to improve governance, introduce international accounting and prepare selected investments for an IPO. Marius Dan, Head of Central Asia at Templeton Global Investments, sees UzNIF as a strategic vehicle for the country's reform agenda. The IPO could give international investors broader access to the Uzbek economy for the first time. At the same time, it would significantly enhance the value of the local capital market. London for abroad, Tashkent for the domestic market If the government gives the green light, UzNIF will divide the placement into two parts. A domestic tranche will be launched in Tashkent. In parallel, an international placement would target institutional investors abroad. Jefferies is expected to coordinate the international issue. Abu Dhabi Commercial Bank and Raiffeisen Bank International will also be involved. Uzbek investment houses are planned for the local tranche. The IPO plans fit into a larger privatization programme. The government wants to list several of the fund's portfolio companies on the stock exchange by 2028. These include the national airline, the electricity grid operator and the telecommunications provider. The economic situation supports these plans. Many observers expect real GDP growth of around 7.7% in 2025. Domestic demand, higher investments and the market-oriented reforms since 2017 are the main drivers of this development. The government aims to increase economic output to more than 200 billion US dollars by 2030. UzNIF is set to play a key role in this. Dividends and scope for investors The fund aims to actively increase the value of its portfolio. To this end, it focuses on management improvements and targeted IPOs. At the same time, it is aiming for a dividend payout ratio of at least 50% across all investments by 2030. The first dividends could be paid from 2027. The prerequisite remains that the portfolio companies operate profitably. The offer could also include an over-allotment option of up to 15% of the GDRs. This option is intended to stabilize trading after the IPO. Specific details on price and timing are still missing. The fund intends to publish these details later in a prospectus. The subscription window is likely to be rather short for private investors. Anyone wishing to participate should therefore prepare early and open a securities account in good time. The post Uzbekistan's sovereign wealth fund plans double IPO appeared first on ostwirtschaft.de.