A new wave of listings: Tashkent prepares companies for global markets

Uzbekistan is set to bring several state-linked companies onto public markets, as part of a new initiative to attract private and international capital, and to ensure the companies meet the transparency and governance standards expected by public investors. The programme covers telecommunications, aviation, banking and energy sectors. The National Investment Fund of Uzbekistan (UzNIF), managed by Franklin Templeton, is spearheading the process and has already listed Uztelecom, the national telecommunications operator.

Uztelecom is the most advanced among the companies in the potential IPO pipeline, already listed on the Tashkent Stock Exchange. An international offering could provide Uztelecom with more investors and additional capital for future investments. To prepare for the listing, Uztelecom is undergoing assessments of its financial reporting, governance, and operational readiness.

Over the next 24 to 36 months, roughly 78% of the net asset value of UzNIF will move from unlisted to listed companies, meaning most of the fund's value will be held in publicly traded companies. The fund aims to have six of its portfolio companies listed by the end of 2028, with no final decision yet made on the timing or sequence of individual transactions.

In addition to the stock-market listings, UzNIF and Franklin Templeton are also changing corporate governance across the portfolio. This includes revising the composition of supervisory boards and the planning, management of finances, and reporting performance of the companies. Ten independent non-executive directors have been elected across the portfolio, with 11 of the 13 companies now having supervisory boards where independent directors and Franklin Templeton representatives form a majority.

UzNIF's €2.28bn portfolio includes energy-related holdings representing around 37% of the fund's net asset value. A new regulated asset base framework is affecting valuations in several energy companies, with initial tariff adjustments taking effect on 1 August, followed by further details by the end of 2026 or in the first quarter of 2027.