As the National Investment Fund launches its debut initial public offering (IPO), individuals can now become shareholders in the state fund. "We firmly believe that achieving sustainable economic growth and improving living standards is impossible without developed capital markets," stated Deputy Minister of Economy and Finance Khurshed Mustafoev during a press conference.
While the fund was previously entirely state-owned, a portion of its shares will now be available to retail and institutional investors. This shift is expected to open doors for new projects, business expansion, and debt reduction, while also securing the necessary capital to attract further investments.
"This is fundamentally an investment in the country's future," noted Manraj Sekhon, Chief Executive Officer of Templeton Asset Management, during a meeting with press on May 20.
"Strong global interest in the initial public offering generated over $2.7 billion in demand, oversubscribing the offer fourfold. This IPO has given the citizens of Uzbekistan a unique opportunity to invest directly in the future of their own country," Sekhon added.
According to Marius Dan, who gave a presentation at the conference, preparations for the IPO spanned an entire year. During this period, the team had to meet with and brief 147 investors across 27 countries, he noted.
The capital market in Uzbekistan is still relatively underdeveloped. Given these conditions, what made you confident that this IPO would succeed?
"Well, the public offering is already a success, but as I mentioned before, this is just one step on a longer journey," said Manraj Sekhon. "We wouldn't have been able to achieve this in Uzbekistan without the public offering in London. So, it is a long road, and we had to start somewhere. As you heard earlier, the size of this offering is larger than all other IPOs conducted in Uzbekistan to date combined. We now have a platform and a blueprint to carry out other IPOs in the country."
Factoring in various risks, what were the subsequent plans to ensure the long-term success of the IPO?
"The upward movement of share prices right out of the gate should serve as a positive signal for future IPOs," explained Templeton representative Marius Dan. "We expect a steadily growing number of retail investors to participate in other private and state-owned companies entering the market."
Note: The National Investment Fund consolidates 13 major enterprises across the energy, transport, telecommunications, and financial sectors of the economy. Listings are currently being prepared for companies within the fund's portfolio, alongside efforts to expand private sector participation.
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