BlackRock Supports Uzbekistan's IPO

Uzbekistan is venturing into the international capital markets—and can count on prominent support in doing so. Among the investors backing the planned initial public offering (IPO) of the National Investment Fund (UzNIF) is BlackRock, the world’s largest asset manager.

According to the fund, several major 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 offering, as they secure demand at an early stage.

In total, the volume of these commitments amounts to approximately 300 million U.S. 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 initial public offering (IPO) is expected to include both common stock and GDRs and will take place simultaneously on the London Stock Exchange and in Tashkent. UzNIF confirmed that the transaction is moving forward.

Strategic Move into International Markets

The fund is wholly owned by the Uzbek government: the Ministry of Economy and Finance is its sole shareholder. UzNIF was established as recently as August 2024 by presidential decree. The goal is to manage state assets more efficiently, improve corporate governance, and drive the transformation of state-owned enterprises.

As of the end of 2025, the fund held minority stakes in 13 companies across key sectors such as aviation, energy, telecommunications, and banking. The total value of these holdings was approximately 2.44 billion U.S. dollars.

The portfolio is heavily focused on infrastructure. The transportation sector accounts for the largest share at 32.4 percent, followed by power generation (19.1 percent), telecommunications (15.2 percent), utilities (14.9 percent), and the banking sector (13.4 percent).

Key investments include, among others, Uzbekistan Airways, Uzbekhydroenergo, Uzbektelecom, the national power grid, and several regional utility companies and banks.

International partners are supporting the IPO

Uzbekistan is relying on international expertise for operational preparations. The fund is managed by a local unit of Franklin Templeton. Among other things, the U.S. asset manager is tasked with improving governance structures, introducing international accounting standards, and preparing selected portfolio companies for capital market transactions.

UzNIF is also collaborating with international financial institutions on the placement. Jefferies is serving as the global coordinator. The transaction is supported by other banks, including Abu Dhabi Commercial Bank, Raiffeisen Bank International, and several regional investment firms for the domestic placement.

The government plans to use the IPO as the kickoff for a broader privatization program. By 2028, several large state-owned enterprises are to be gradually listed on the stock exchange—including the national airline, the electricity grid operator, and the telecommunications provider.

Pricing has yet to be determined

The securities being offered will be made available to international investors through established channels. In the U.S., the offering is directed at qualified institutional investors under Rule 144A; outside the U.S., it will take place as part of offshore transactions in accordance with Regulation S.

The final offering price and the allocation between the domestic and international tranches will be determined through a bookbuilding process. Pricing is expected in mid-May, and trading on the London and Tashkent stock exchanges could begin shortly thereafter.

The international offering also includes an over-allotment option of up to 15 percent of the GDRs—a common tool used to stabilize the share price following the IPO.

With this planned IPO, Uzbekistan is testing the receptiveness of international capital markets on a large scale for the first time—while simultaneously seeking to more closely align investors with the country’s economic transformation.