State-owned companies in Uzbekistan, Uztelecom and Uzbekinvest have successfully completed their initial public offerings (IPOs) at the Tashkent Stock Exchange, raising approximately $3.82 mn, exchange's press service reported.
The IPOs, which took place on December 15, marked a significant step in the "people's IPO" program, where shares of 40 state-owned enterprises are offered to the general public. Uztelecom and Uzbekinvest were included in this program in March of the current year.
During the IPO of Uzbekinvest, the state insurance company, the exchange received 247 applications totaling UZS 18.13 bn (over $1.46 mn). One hundred orders were executed, amounting to UZS 14.11 bn (over $1.1mn). Over 70% of the outstanding shares were distributed among institutional investors, with the remainder going to retail investors.
In the case of Uztelecom, the telecom operator, almost 11 thousand applications were received, representing a total value of UZS 43.6 bn (over $3.5 mn). Approved applications amounted to UZS 33.25 bn (around $2.7 bn), with 60% allocated to corporate and institutional investors.
The Tashkent Stock Exchange expressed gratitude for the active participation in the IPOs and high interest in the shares, encouraging continued participation in secondary markets.
Uzbekinvest had its shares included in the quotation list of the capital's stock exchange on November 28, with plans to sell 14.1 mn shares as part of the "people's IPO" program. The underwriter for the placement was KAP DEPO.
Uztelecom, during its IPO, set the estimated price for the additional issue in the range of UZS 6,000 ($0.48) to UZS 10,000 ($0.81) per share, resulting in an estimated placement volume ranging from UZS 33 bn (over $2.7 mn) to UZS 55 bn (over $4.4 mn).
The successful completion of these IPOs contributes to the broader goal of privatization and market development in Uzbekistan, fostering increased public participation in the ownership of key state-owned enterprises.
Uzbektelecom, established in 1992 and based in Tashkent, Uzbekistan, is a telecommunications company delivering services across the country. Specializing in data transmission, it provides internet access, VPN services, video conferencing, and corporate network development. The company also facilitates international telephone services via prepaid cards utilizing VoIP technology.
Uzbekinvest, an Export-Import Insurance Company, engages in "General Insurance" across all 17 insurance classes. Established in April 1994 by the President's decree, it was later reorganized into Uzbekinvest National Export-Import Insurance Company in 1997, becoming the official state agent for export credit and investments insurance. The company transitioned into a joint stock company on July 1, 2020, following presidential and cabinet decrees aimed at enhancing export financing and insurance mechanisms.
Earlier Daryo reported that in November 2023, there were notable fluctuations in trading behaviors and stock outcomes on the Tashkent Stock Exchange. The overall trading volume for the month stood at UZS 16.3 bn (equivalent to over $1.3 bn), with a total of 36,218 transactions executed. This marked a 0.9 times decline compared to the same period in November 2022. The AVEX Index, a crucial metric reflecting market dynamics, experienced a 5% decrease, reaching its pinnacle at 2,546.9 points.
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