BlackRock supports Uzbekistan's IPO

Uzbekistan is venturing onto the international capital markets - and can count on prominent support. The world's largest asset manager BlackRock is among the investors supporting the planned IPO of the National Investment Fund UzNIF. According to the fund, several large institutional investors have signed so-called cornerstone agreements. In addition to BlackRock, these include funds from Franklin Resources, Redwheel and two subsidiaries of the Allan & Gill Gray Foundation. Such agreements are considered an important signal for the placement, as they secure demand at an early stage. The total volume of these commitments amounts to around 300 million US dollars in the form of Global Depositary Receipts (GDRs). These are certificates that represent shares and can be traded on international stock exchanges. The planned IPO will include both ordinary shares and GDRs and will take place in parallel on the London Stock Exchange and in Tashkent. UzNIF confirmed that the transaction is progressing. Strategic move into international markets The fund is fully backed by the Uzbek state: the Ministry of Economy and Finance is the sole shareholder. UzNIF was only founded in August 2024 by presidential decree. The aim is to manage state assets more efficiently, improve corporate governance and drive forward the transformation of state-owned companies. At the end of 2025, the fund held minority stakes in 13 companies from key sectors such as aviation, energy, telecommunications and banking. The total value of these investments amounted to around USD 2.44 billion. The portfolio has a strong focus on infrastructure. The transportation sector accounts for the largest share at 32.4%, followed by power generation (19.1%), telecommunications (15.2%), utilities (14.9%) and banking (13.4%). The most important holdings include Uzbekistan Airways, Uzbekhydroenergo, Uzbektelecom, the national power grid and several regional utility companies and banks. International partners support the IPO Uzbekistan is relying on international expertise for the operational preparations. The fund will be managed by a local unit of Franklin Templeton. Among other things, the US asset manager is to improve governance structures, introduce international accounting standards and prepare selected investments for capital market transactions. UzNIF is also working with international financial institutions on placements. Jefferies is assuming the role of global coordinator. The transaction is supported by other banks, including Abu Dhabi Commercial Bank, Raiffeisen Bank International and several regional investment houses for the domestic placement. The government plans to use the IPO as a prelude to a broader privatization program. By 2028, several large state-owned companies are to be gradually floated on the stock exchange - including the national airline, the electricity grid operator and the telecommunications provider. Pricing still pending The securities offered will be made available to international investors through established structures. In the US, the offering is made to qualified institutional investors under Rule 144A; outside the US, it is made in offshore transactions under Regulation S. The final issue price and the allocation between the domestic and international tranches will be determined in a bookbuilding process. Pricing is expected to take place in mid-May and trading on the London and Tashkent stock exchanges could start shortly thereafter. The international offering also includes an over-allotment option of up to 15% of the GDRs - a common tool to stabilize the share price development after the IPO. With the planned IPO, Uzbekistan is testing the absorption capacity of international capital markets on a larger scale for the first time - and at the same time trying to tie investors more closely to the country's economic transformation. The post BlackRock supports Uzbekistan's IPO appeared first on ostwirtschaft.de.