TASHKENT

Uzbekistan’s major state-owned metallurgical plant, Uzmetkombinat, plans to hold an initial public offering (IPO) on a foreign stock exchange in 2023 and considers issuing Eurobonds in the next two-three years.

Uzbekistan has listed several major state-owned enterprises for initial public offerings (IPO) to take place in 2021-2023 as a part of its plan to reform the economy.

The Central Asian country is making efforts to improve its investment climate after more than two decades of economic isolation. The closed, autarkic system viewed most foreign investments as a threat. That ended when Islam Karimov, who had led Uzbekistan since before the Soviet breakup, died in 2016.

Current President Shavkat Mirziyoyev, once a prime minister under Karimov, has made attracting foreign investors one of his top priorities in an increasingly ambitious plan to open Uzbekistan to the outside world.

Mirziyoyev approved the list of companies to go public in the next three years. The list includes the national air carrier Uzbekistan Airways as well as major companies in the energy, mining, banking and insurance.

Uznetkombinat has also drafted a roadmap for the upcoming IPO that has been agreed with the country’s Finance Ministry and approved by the government.

The plant also plans to issue Eurobonds and has started negotiations with investment banks to arrange Eurobond placement on one of the stock exchanges abroad, it plans to issue corporate bonds worth 50 billion soums on the domestic market.

Uzmetkombinat plans to receive an international rating by the end of 2021 and is currently holds talks with international rating agencies – Standard & Poor’s, Moody’s and Fitch Ratings.

Uzbekistan’s largest ever privatisation will see more than 1,400 state-owned companies and properties sold off partially or fully to foreign and domestic investors.

In April, Uzbekistan appointed Deloitte, Grant Thornton, and KPMG to advise the State Assets Management Agency (UzSAMA) on the sale of 18 state-owned enterprises and ensure transparency in the privatisation process.