BAKU, Azerbaijan, June 11
By Ilkin Seyfaddini - Trend:
Uzbekistan plans to hold a primary (IPO) or secondary (SPO) public offering of shares of five joint stock companies with special conditions, Trend reports citing the Uzbek online portal on Legislation Acts Impact Assessment of Uzbekistan.
The special conditions are that applications for the purchase of shares is collected exclusively by the underwriter, with which the agreement to organize an IPO or SPO; the underwriter determines the range of offer prices for the collection of applications for the purchase of shares, which does not depend on the nominal and the estimated value of the shares; shares are distributed among investors at a single price; the underwriter has the right to choose investors, among whom the shares will be distributed.
The companies are Kyzylkumcement (state share equals 86.9 percent, planned to sell 10.9 percent), the Uzbek Republican Commodity and Raw Materials Exchange (state share equals 26 percent, planned to sell 12 percent), Andijan Biochemical Plant (state share equals 96 percent, planned to sell 15 percent), JV British American Tobacco Uzbekistan (planned to sell whole state share of 2.6 percent), JSC Oztemiryolkonteyner (state share equals 90 percent, planned to sell 27.1 percent).
In December 2019, President of Uzbekistan Shavkat Mirziyoyev ordered to significantly reduce the state's share in economy. Draft strategy for the period from 2020 through 2025, a privatization plan and rules of introduction of corporate governance have been developed.
It is planned to reduce the number of enterprises with state participation by 81 percent, to leave the state only 554 enterprises, and sell or abolish the rest.
Government of Uzbekistan sold its 25 percent stake in Kafolat Insurance Company to Genesis Innovation company, on June 3, 2020.
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