Uzbekistan’s National Investment Fund eyes IPOs in London and Tashkent

Uzbekistan’s National Investment Fund (UzNIF) on April 9 announced that it is considering dual initial public offerings (IPOs) on the London Stock Exchange (LSE) and the Tashkent Stock Exchange (TSE).

Its listing plans focus on ordinary shares and global depositary receipts.

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).

The fund’s sole shareholder is Uzbekistan’s Ministry of Economy and Finance. IPO proceeds would go to the state rather than to the fund itself. 

If the IPO plans are green-lighted, the listing would be split between a domestic tranche in Tashkent and an international placement targeting institutional investors abroad.

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.

“UzNIF has a strong and diversified portfolio of strategic assets in Uzbekistan, managed with a singular focus on unlocking value. The Company is at the heart of Uzbekistan's dynamic reforms that are driving the country's rapid GDP growth,” said Marius Dan, chief executive for Central Asia at Templeton Global Investments. “The proposed IPO will further boost Uzbekistan's position on the international investment stage, as this will be the first opportunity for international equity investors to gain exposure to Uzbekistan's reform-driven and rapidly modernising economy. The proposed IPO of UzNIF also represents a defining moment for the development of Uzbekistan's capital markets. It will offer a landmark opportunity for Uzbek people to own a part of the country's future growth.”

The international leg of the offering is expected to be coordinated by Jefferies, alongside a group of joint bookrunners including Abu Dhabi Commercial Bank and Raiffeisen Bank International. Domestic placements would be handled by local investment firms.

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 country has posted strong economic growth in recent years, with real GDP expanding by an estimated 7.7% in 2025, driven by domestic demand, rising investment and a programme of market-oriented reforms launched in 2017. Officials aim to more than double the size of the economy to over $200bn by 2030.

UzNIF’s structure is designed to increase returns through active portfolio management and selective IPOs, while maintaining a minimum dividend payout ratio of at least 50% across its holdings until 2030. The fund expects to begin dividend distributions from 2027, subject to profitability.

The offering would also include an over-allotment option of up to 15% of the global depositary receipts, a common feature aimed at stabilising trading after listing.

While details such as pricing and timing have yet to be disclosed, the company said further information would be provided in a prospectus if the transaction proceeds.

The subscription window for retail investors is expected to be limited, prompting early preparation such as opening brokerage accounts.