UzAuto Motors, Uzbekistan's sole car manufacturer has announced the launch of longly anticipated IPO process.
Photo: “Daryo” / Bahora Sadirdinova
This is the first public offering (IPO) by a large state-owned company in Uzbekistan.
The company will place up to 5 percent of its shares on the "Tashkent" stock exchange, which can be purchased by individuals and legal entities.
Deputy Minister of Finance Odilbek Isokov, chairman of the board of "Uzavtosanoat" Shavkat Umurzokov and CEO of UzAuto Motors Bo Andersson took part in the event.
Public placement of UzAuto Motors shares and attracting the private sector to investments is an important step for the company's strategic development. The company's rapid development and many achievements in recent years have made it a reliable investment partner, - said Shavkat Umurzakov.
He noted that UzAuto Motors has turned from a loss-making and subsidized company into the largest and most profitable car manufacturer that has established production in foreign countries.
In July of this year, the underwriter of UzAuto Motors was selected by the Freedom Broker investment company based on the results of the tender.
Analysts expect the car manufacturer's share price to increase after the IPO, as it is a reliable and profitable enterprise, - commented Yevgeny Mojeyko, executive director of Freedom Broker.
In other countries, securities of large national companies work well as an investment tool, and it is expected to be effective in Uzbekistan as well.
Analysts' forecasts are based on the economic indicators of the car manufacturing enterprise - since 2020, UzAuto Motors has been among the top ten largest taxpayers in Uzbekistan.
The company's net income in 2021 was $166mn , the production volume was 235,000 cars.
This year, it plans to increase production to 340,000 cars, which would lead to a significant increase in net profit.
By 2026, revenue is expected to double compared to 2021.
The attractiveness of UzAuto Motors confirms the interest in its stocks in the international capital market.
In 2021, the automaker placed $300mn worth of Eurobonds on the London Stock Exchange. Then the demand exceeded the offer by 5 times.
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