Tashkent, Uzbekistan (UzDaily.com) -- In accordance with the Development Strategy of New Uzbekistan for 2022-2026, approved by President Shavkat Mirziyoyev, the IPO of UzAuto Motors started on 6 October 2022. In Uzbekistan, this is the first public offering (IPO) by a large state-owned company.

The company will place up to 5% of shares on the Uzbekistan Stock Exchange, which can be purchased by individuals and legal entities.

At the solemn event on the occasion of the company’s IPO, Deputy Minister of Finance Odilbek Isakov, Chairman of the Board of Uzavtosanoat JSC Shavkat Umurzakov and General Director of UzAuto Motors JSC Bo Andersson addressed the assembled potential investors with welcoming words.

“The public offering of shares of UzAuto Motors and the involvement of the private sector in investment is an important step for the strategic development of the company. The rapid development and numerous achievements of the company in recent years have made it a reliable investment partner. With the joint efforts of the UzAuto team and with the direct support of the head of state, UzAuto Motors has grown from a loss-making and subsidized company into the largest and most profitable automaker that has launched production in foreign countries,” said Shavkat Umurzakov in his greeting.

At the event, a presentation of UzAuto Motors JSC was presented, which indicated the main indicators of the company’s financial stability, as well as a strategy for further development.

The underwriter of the initial public offering (IPO) of shares of UzAuto Motors in July of this year, according to the results of the tender, was chosen by the Freedom Broker investment company, which has extensive experience in organizing IPOs and SPOs both in Uzbekistan and abroad. At the first stage of privatization, UzAuto Motors will place up to 5% of shares on the Tashkent Republican Stock Exchange.

“The IPO of UzAuto Motors is one of the most anticipated IPOs in Uzbekistan. The entry of such companies to IPO with the opportunity to buy their shares to a wide range of investors is an important apex in the development and stimulation of the local capital market. Securities of the largest national companies work well as an investment tool in other countries and will work effectively in Uzbekistan. Analysts expect that the automaker’s share price will rise after the initial public offering, because it is a reliable and profitable enterprise,” Evgeny Mojeiko, CEO of Freedom Broker, shared his forecast.

Analysts’ forecasts are based on the economic indicators of the automaker - since 2020, UzAuto Motors has been among the ten largest taxpayers in Uzbekistan. The company’s 2021 net income was US$166 million under IFRS, with a production volume of 235,000 vehicles. This year, it is planned to increase the production volume to 340,000 units of cars, which, accordingly, will lead to a significant increase in net profit. In addition, it is expected that by 2026 revenue will grow 2 times compared to 2021.

The attractiveness of UzAuto Motors confirms the interest in its securities on the international capital market. In 2021, the automaker placed US$300 million worth of Eurobonds on the London Stock Exchange. Then demand exceeded supply by 5 times.