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bne Invest
July 19, 2019 www.intellinews.com I Page 10
Oltin fund to be first internationally listed Uzbek security
Uzbekistan’s closed-end fund Oltin is set to be- come the first internationally listed security to provide investors with exposure to the Central Asian nation undergoing an opening up and wave of economic reform. On July 23, the fund will be listed on the Specialist Fund Segment of the Main Market of the London Stock Exchange (LSE). The investment manager for the initial public offering (IPO) is Sturgeon Capital and the placing agent is Kazakh investment bank Visor Capital.
Oltin will be one of the only accessible securi- ties offering exposure to Uzbekistan apart from the Uzbek sovereign eurobond issued earlier this year. Sturgeon is targeting a sale of 5mn ordinary shares and is hoping to raise €50mn at €10 a
share. Uzbek broker Orient Securities, partnered with Sturgeon, will provide domestic support.
“It is as if the Berlin wall in Uzbekistan had fallen two-and-a-half years ago,” Clemente Cappello, founder and CIO of Sturgeon Capital, told bne Intel- liNews. “They’re moving from a closed Soviet-type economy to a market economy that is integrated with the rest of the world. And traditionally the in- vestors that have been early in these situations have done extremely well. We are trying to give investors the opportunity to do this without having to go to Uz- bekistan, trying to set up a local brokerage account, where on the local market there is no liquidity.”
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Russian diamond major Alrosa sets up JV in Zimbabwe
Russian uncut diamond major Alrosa announced the formation a joint venture with the national Zimbabwe Consolidated Diamond Company (ZCDC). Alrosa will get a controlling 70% stake in the JV for the development of greenfield projects.
"The JV may allow Alrosa to expand its rough diamonds resource base if exploration is successful," BCS Global Markets commented on July 17, seeing the news as slightly positive for the Russian company. BCS currently has a Hold recommendation on Alrosa with a target price of $1.6 and 13% excess return.
The goals of the venture are the extraction and independent sale of rough diamonds on foreign markets. The companies will explore the areas located in Chimanimani region.
Previously Alrosa reported more disappointing sales in June as it continues a poor year. June's rough diamond sales were down 43% year on year at $219mn, which is also 43% below the historical level for June. Sales have been in the basement for much of this year, pulling the company’s results down.
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