Uzbekistan has initiated its first major international stock market listing, targeting $2.4bn in state assets through London and Tashkent exchanges. The Uzbekistan National Investment Fund (UzNIF), managed by Franklin Templeton, aims to complete listings by mid-May, signaling President Shavkat Mirziyoyev’s push to liberalize the economy. The fund, comprising stakes in 13 state-owned entities including airlines and power producers, seeks to attract global investors amid easing geopolitical tensions in the region.

The move follows Mirziyoyev’s broader reforms to privatize banks and industries, though the economy remains heavily state-controlled. UzNIF’s chairman, Finance Minister Jamshid Kuchkarov, emphasized transparency, stating the listings will operate under "global standards." Investors anticipate the IPO will set a precedent for listing Navoi Mining, the world’s fourth-largest gold miner, potentially valuing it at $20bn or more. Franklin Templeton, which oversaw Romania’s successful 2015 listing of state assets, is structuring UzNIF’s depositary receipts to mirror that model.

UzNIF’s holdings, valued at $2.4bn last year, include a 25% stake in Uzbekistan Airways and a 40% stake in a hydropower producer, each worth $400mn. The fund was streamlined from 18 to 13 companies to focus on larger stakes, with independent directors added to boards to enhance governance. A successful listing could revitalize Tashkent’s stagnant stock market, which reported just $2.4mn in February trades amid low free-float availability.

This strategy mirrors Romania’s 2015 experience, where state asset listings spurred capital returns and governance reforms. UzNIF’s focus on London and Tashkent listings reflects a dual approach to attract both global and regional investors. Analysts note the move could test international appetite for emerging markets post-conflict, with Mirziyoyev’s administration banking on economic openness to drive long-term growth.