Uzbekistan is preparing for the entry of some of its largest state-owned companies into global public markets, with the national telecommunications operator, Uztelecom, now considered the most advanced candidate for international listing.
Attracting International Investment
This program includes the telecommunications, aviation, banking, and energy sectors and aims to attract more private and international investments while subjecting large companies to the transparency and governance requirements that public investors expect. For international investors, this move could provide access to some of Uzbekistan's largest corporate assets.
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Developments in Corporate Governance
The transition process to the public market is being led by the Uzbekistan National Investment Fund (UzNIF). This fund is managed by Franklin Templeton and holds shares in 13 major Uzbek companies. According to Marius Dan, CEO of Franklin Templeton's Central Asia division, Uztelecom is currently in the necessary advancements for an initial public offering (IPO), and evaluations related to financial reports, governance, and operational readiness are underway.
Creating transparency and improving governance structures in these companies are other goals of this program. Dan noted that changes in the composition of supervisory boards and the hiring of reputable international managers are in progress. These developments are crucial for preparing companies for public offerings as they help enhance transparency and investor confidence.
Increasing Capital and New Opportunities
Public offerings can help companies raise capital directly, rather than just relying on the sale of existing shares. Dan stated that the government will have priority if it wishes to sell shares, while UzNIF may also sell part of its shares to ensure that there is sufficient liquidity in the market.
As 2026 will be the first full year of Franklin Templeton's management of UzNIF, the results of this year could provide a better basis for assessing profitability and future dividend capacity. The IPOs of these companies could contribute to Uzbekistan's economic growth and attract new investments in the country.
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