Uzbekistan is preparing to bring some of its biggest state-linked companies to public markets, with national telecommunications operator Uztelecom now the most advanced candidate for an international listing.
The programme extends across telecommunications, aviation, banking and energy and is designed to attract more private and international capital while bringing major companies under the transparency and governance requirements expected by public investors.
For international investors, that could open access to some of Uzbekistan’s largest corporate assets. For Uzbekistan, it is a test of whether its capital-market reforms can move beyond UzNIF’s London debut to a broader pipeline of publicly traded companies.
The process is being driven through the National Investment Fund of Uzbekistan (UzNIF), managed by Franklin Templeton, which holds stakes in 13 major Uzbek companies and made its own London market debut in May.
The next step: listing the companies
Uztelecom is furthest along in the potential IPO pipeline, according to Marius Dan, CEO for Central Asia at Templeton Global Investments.
The company is already listed on the Tashkent Stock Exchange. UzNIF is considering an international listing and an increase in the number of shares available on the domestic market.
An international offering could allow more investors to buy shares in the company and could also provide fresh capital for future investment.
Responding to questions from Euronews, Dan said preparations included assessing Uztelecom’s financial reporting, governance and operational readiness.
Five equity-adviser selection processes are also under way for Uzbekistan Airways, Uztelecom, Regional Electric Networks, the National Electric Grid of Uzbekistan and Sanoat Qurilish Bank (SQB).
“Over the next 24 to 36 months, roughly 78% of the net asset value of the fund will move from unlisted to listed companies,” Dan said.
That would mean most of UzNIF’s value would eventually be held in companies whose shares are publicly traded.
A presidential decree provides for six UzNIF portfolio companies to be listed by the end of 2028. The fund said no final decision has yet been taken on the timing or sequence of individual transactions.
Changing how companies are run
UzNIF and Franklin Templeton are also changing corporate governance across the portfolio, including the composition of supervisory boards and the way companies plan, manage finances and report performance.
“We’ve made changes across all 13 companies. We’ve appointed the members of our investment team and recruited 10 very reputable international directors that were appointed on the supervisory boards in certain cases of more than one company,” Dan explained.
Ten independent non-executive directors have been elected across the portfolio, while 11 of the 13 companies now have supervisory boards on which independent directors and Franklin Templeton representatives form a majority.
Nine transformation plans have been completed, with four more expected in the coming months.
At Uzbekistan Airways, for example, the fund has identified 120 initiatives covering growth, efficiency, profitability, customer experience and expansion.
Those changes are important because a stock-market listing involves more than selling shares. Companies also need reliable accounts, clearer decision-making and governance structures that can withstand outside scrutiny.
Inside UzNIF’s €2.28bn portfolio
UzNIF’s net asset value stood at around €2.28bn as of 31 July 2026.
For the first half of 2026, the fund reported €147mn in net profit, including a €156mn fair-value gain and €24mn in dividend income.
Energy-related holdings represented around 37% of the fund’s net asset value.
Dan said a new regulated asset base framework was among the factors affecting valuations at several energy companies. The system determines how regulated utilities can earn returns on infrastructure investment and how tariffs are calculated.
Initial tariff adjustments took effect on 1 August, with further details expected by the end of 2026 or in the first quarter of 2027.
IPOs could bring fresh capital
The potential listings could also bring money directly into the companies rather than simply allowing existing shareholders to sell stakes.
Dan said the government would have priority if it chose to sell shares, while UzNIF could also sell part of its own holdings if needed to ensure sufficient market liquidity.
“The companies will also have priority to raise capital as part of these IPOs because these are all incredibly exciting assets. They have significant capex programs, more investments that are needed,” he said.
The distinction is important: selling existing shares changes ownership, while issuing new shares can give companies money for aircraft, telecom networks, power infrastructure or other investment.
The final structure of each transaction will be decided later.
2026 is the first full year in which Franklin Templeton has managed UzNIF, after taking over in May 2025.
Dan said this year’s results should provide a fuller basis for assessing profitability and future dividend capacity. The first UzNIF dividend would be considered in 2028, based on the fund’s 2027 financial results.