Uzbekistan’s national investment fund UzNIF on May 13 completed the country’s first ever public market debut, raising $603.6mn at a valuation of around $1.95bn on the London and Tashkent stock exchanges.

The listing of UzNIF drew attention as stemming from the London Stock Exchange’s (LSE’s) first major initial public offering (IPO) of 2026.

UzNIF global depositary receipts were floated in London, with one GDR representing 64,700 shares. The offer price was set at $25.00 per GDR.

The total size of the deal, a landmark move in the process of opening up the capital markets of Central Asia’s second largest economy to global investors, could rise to around $691mn if a 15% over-allotment option granted to underwriters is fully exercised.

The dual IPO saw the sole shareholder of UzNIF, Uzbekistan’s Ministry of Economy and Finance, offer more than 1.56 trillion shares, representing 31% of the company’s share capital. 

UzNIF is managed by investment giant Franklin Templeton. It holds stakes of between 25% and 40% in 13 of Uzbekistan’s state-owned companies, including the national airline, national telecom operator and national grid (see list at end of article).

The Tashkent branch of the IPO resulted in around 47.9bn ordinary shares, priced at Uzbekistani som (UZS) 4.65 per share, being allocated to institutional and retail investors in Uzbekistan and selected other jurisdictions. In London, approximately 1.52 trillion shares were sold in the form of 23.4mn GDRs.

Uzbek retail investors purchasing up to UZS 12bn ($994,000) worth of stock were granted a 5% discount, lowering the price to UZS 4.41 per share, in an effort to broaden domestic participation in the country’s still relatively shallow equity market. 

The ministry also granted Jefferies, acting as sole global coordinator and stabilising manager in the IPO, an option to place up to an additional 3.5mn GDRs, equivalent to 15% of the international tranche, which, as mentioned, could increase the total deal size. The over-allotment option may be exercised within 30 days of the start of conditional trading in London. 

Conditional trading in the GDRs on the London Stock Exchange began on May 13 under the ticker symbols UZNF and UZ20, while unconditional trading and admission to the Financial Conduct Authority’s official list are expected on or around May 18. Shares are also expected to begin trading on the Tashkent Stock Exchange on the same date. 

The deal drew significant institutional interest, with cornerstone investors agreeing to purchase $300mn worth of GDRs. Those investors included funds and accounts managed by BlackRock (NYSE: BLK), Franklin Resources (NYSE: BEN) and Redwheel (RWCEX.US) and treasury companies linked to the Allan & Gill Gray Foundation. 

Marius Dan, chief executive for Central Asia at Franklin Templeton and general director of FE Franklin Templeton Asset Management LLC in Uzbekistan, described the IPO as “a defining moment for Uzbekistan and the development of its capital markets”. He noted that the transaction had opened the country to international equity investors while allowing local investors to participate in Uzbekistan’s growth story. 

“This major milestone is also a testament to the global institutional investor confidence in UzNIF and Uzbekistan as a highly attractive investment destination, as well as a recognition of the country’s economic reforms initiated and carried out under the leadership of President Shavkat Mirziyoyev.

“As the first international public equity transaction from Uzbekistan, it is expected to open further investment opportunities in the country for international and domestic investors by encouraging other companies in the country to access public capital markets, in addition to the IPOs planned for certain of UzNIF’s portfolio companies,” Dan added.

UzNIF was established in December 2024. The government appointed FE Franklin Templeton Asset Management LLC, a Tashkent-based subsidiary of Franklin Resources, as trustee of the fund under an investment management agreement signed with the Ministry of Economy and Finance. Management powers were formally transferred to the trustee in August 2025. 

The international offering was led by Jefferies as sole global coordinator, alongside joint bookrunners including Abu Dhabi Commercial Bank, Raiffeisen Bank International, WOOD & Company and Auerbach Grayson. Domestic managers included Alkes Research, Avesta Investment Group and Bluestone Financial Group. 

Several international law firms and advisers were involved in the transaction. Cleary Gottlieb Steen & Hamilton and Kosta Legal advised the company and the Uzbek government, while White & Case and Dentons Tashkent acted for the global coordinators and bookrunners. 

The company, the government and senior management connected to the trustee, entered into customary 180-day lock-up agreements following the listing. 

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%