The National Investment Fund of the Republic of Uzbekistan (UzNIF) has successfully concluded its Initial Public Offering (IPO), raising approximately $603.6 million. The announcement was made by Franklin Templeton, the international firm appointed to manage the fund. The offering marks a historic milestone for the Uzbek capital market, attracting a high caliber of global institutional interest.
The IPO demonstrated robust investor confidence, with the order book oversubscribed more than four times. The deal structure included both local ordinary shares and Global Depositary Receipts (GDRs).
The transaction saw the participation of world-class “anchor” investors, including funds managed by BlackRock, Franklin Resources, and Redwheel. These entities, alongside treasury companies of the Allan & Gill Gray Foundation, secured a combined allocation of $300 million.
Pricing and Market Valuation
- GDR pricing: The offering was priced at $25.00 per GDR.
- Local incentives: For individual investors in Uzbekistan applying for up to 12 billion UZS, a 5% discount was applied, bringing the share price down to 4.41 UZS.
- Market cap: Based on the final offering price, UzNIF’s market capitalization is estimated at approximately $1.95 billion.
Strategic portfolio and dividend policy
The fund’s attractiveness is anchored in its portfolio, which holds minority stakes in 13 major state-owned enterprises, including Uzbekistan Airways and Uztelecom.
A key driver for investors was the fund’s transparent dividend policy: portfolio companies are mandated to distribute at least 50% of their net profit as dividends through 2030. Furthermore, UzNIF plans to conduct separate IPOs for six of its portfolio companies by 2028, offering further upside potential.
Conditional trading of the GDRs is expected to commence on the London Stock Exchange (LSE) on May 13, with full admission scheduled for May 18. Simultaneously, the shares will be listed on the Toshkent Stock Exchange under the ticker UZNF.
The international offering was led by Jefferies International Limited as Global Coordinator, with legal counsel provided by world-class firms including Cleary Gottlieb and White & Case.
