BlackRock among big funds backing Uzbek state’s first foray on to global equity markets

BlackRock, Inc (NYSE: BLK), the world’s largest asset manager, is among big funds that have signalled their support for the Uzbek state’s first foray into global equity markets by signing cornerstone agreements that will back a National Investment Fund of the Uzbek Republic (UzNIF) initial public offering (IPO) on the London and Tashkent Stock Exchanges.

"Certain funds and accounts under the management of ​BlackRock, Franklin Resources [NYSE: BEN], Redwheel [RWCEX.US], and two wholly-owned treasury companies of Allan & Gill Gray Foundation have entered into cornerstone ​agreements," UzNIF said in a statement.

It added that the value of the agreements was around $300mn of global depositary receipts (GDRs), namely certificates traded on overseas stock exchanges that represent the shares of a foreign company.

UzNIF confirmed it will proceed with the IPO, debuting with both ordinary shares and GDRs.

The Ministry of Economy and Finance is UZNiF’s sole shareholder.

UzNIF at the end of 2025 held minority stakes in 13 companies across aviation, energy, banking and telecommunications, with a combined net asset value of $2.44bn. The fund was established by presidential decree in August 2024 to support economic modernisation, strengthen corporate governance and accelerate the transformation of state-owned enterprises (SOEs).

UzNIF’s portfolio is weighted towards infrastructure-heavy sectors, with transportation accounting for 32.4% of the total net asset value, followed by energy production (19.1%), telecommunications (15.2%), utilities (14.9%) and banking (13.4%).

UzNIF’s key holdings include:

• Uzbekistan Airways — 25%
• Uzbekhydroenergo — 40%
• Uzbektelecom — 30%
• Railway Infrastructure Company — 40%
• SQB (Sanoatqurilishbank) — 40%
• National Electric Grid — 40%
• Regional Gas Supply Company — 40%
• Uzbek Commodity Exchange — 40%
• Thermal Power Plants — 25%
• Regional Electric Networks Company — 40%
• Uzbekinvest — 40%
• Tashkent City Transport Services — 25%
• Water Supply Company — 40%

The fund is managed by a local subsidiary of Franklin Templeton, the US-based asset manager with $1.74 trillion in assets under management. It has been tasked by Uzbekistan with enhancing governance standards, introducing international financial reporting and preparing selected assets for eventual listings.

Jefferies International is acting as sole global coordinator in the offering, supported by Abu Dhabi Commercial Bank, Auerbach Grayson, Raiffeisen Bank International and WOOD & Company as joint bookrunners. The domestic tranche is being managed by Alkes Research, Avesta Investment Group and Bluestone Financial Group.

Uzbekistan’s government has signalled plans to float several of the fund’s underlying portfolio companies by 2028, including the national airline, electricity grid operator and telecoms provider, as part of a wider privatisation programme.

The securities in the IPO will not be registered under the US Securities Act of 1933 and will instead be offered to qualified institutional buyers under Rule 144A in the United States and to non-US investors in offshore transactions in line with Regulation S.

The final offer price and allocation between the domestic and international tranches will be determined through a book-building process, with pricing expected in mid-May and trading on both exchanges to follow shortly thereafter. The international offering includes an over-allotment option of up to 15 per cent of the GDRs.