Uzbekistan Investment Fund IPO Signals Investor Trust

Tashkent, Uzbekistan (UzDaily.com) — “The entry of Uzbekistan into the international capital markets through the UzNIF IPO is above all a signal of trust from global investors,” said Alpari analyst Anna Bodrova, commenting on the results of the initial public offering of the National Investment Fund of Uzbekistan.

It was previously reported that the initial public offering (IPO) of the National Investment Fund of Uzbekistan (UzNIF) on the Tashkent and London stock exchanges was completed with a total volume of US$691.5 million after the full exercise of the additional allotment option.

Demand for the fund’s shares exceeded supply by more than four times, which analysts interpret as evidence of growing systemic interest from international investors in Uzbek assets.

Signal of trust from the global market

Alpari analyst Anna Bodrova assessed the results of the offering as a qualitative shift in the perception of Uzbekistan in international capital markets. “The entry of Uzbekistan into the international capital markets through the UzNIF IPO is above all a signal of trust from global investors,” she said.

According to her, the significant oversubscription indicates that interest in Uzbek assets is “already moving beyond the regional level and becoming systemic.”

She also pointed to the macroeconomic significance of the deal, noting that the economy is gaining expanded access to external financing and reducing dependence on domestic sources of capital.

Bodrova added that the IPO has a stabilizing effect on the national currency. “For the som exchange rate, the UzNIF IPO is a moderately positive factor. The inflow of foreign currency from the offering and investor interest strengthen the external balance and support the stability of the national currency. In the short term, this reduces pressure on the som and helps keep the exchange rate within a narrow range,” she said.

In a broader context, she described the transaction as a new pillar of financial system stability in the country. In her view, combined with current macroeconomic trends—slowing inflation and strong economic growth—it creates a more stable foundation for further development and future listings.

IPO structure and parameters

On 29 April, UzNIF announced the launch of an IPO worth up to US$1.95 billion. The Ministry of Economy and Finance planned to float about 30% of the fund’s shares on two exchanges. The offer price was set at US$25 per global depositary receipt (each receipt corresponding to 64,700 shares) and 4.65 soums per share; for retail investors in Uzbekistan purchasing up to 12 billion soums, a preferential price of 4.41 soums per share applied.

On 6 May, it was reported that the order book was oversubscribed more than three times. Anchor investors, including BlackRock, Franklin Resources, and Redwheel, had collectively subscribed to US$300 million at that point. The subscription period closed on 12 May.

As a result of the offering, the Ministry of Economy and Finance placed 1.56 trillion shares, representing 31% of the fund’s equity. The bulk was allocated to foreign institutional investors in the form of GDRs, while retail investors and other buyers on the Tashkent exchange purchased around 48 billion shares. The initial capital raised amounted to US$603.6 million. With a total share count of 5.05 trillion, the fund’s market capitalization at the offer price was estimated at US$1.95 billion.

Exercise of the greenshoe option

The sole global coordinator of the IPO, Jefferies International Limited, confirmed full exercise of the additional allotment option (greenshoe option). Under the option, an additional 3.51 million GDRs were placed at US$25 per share, in line with the IPO price. The transaction amounted to approximately US$87.9 million, with settlement completed on 22 May.
As a result, the total IPO size increased from US$603.6 million to US$691.5 million, and the free float rose from 31% to 35% of the fund’s equity.