Page 20 - Uzbek Outlook 2022

“Things are changing now thanks to the stable currency and falling inflation,” said Nosirov. “But they
will take several years to normalise.”

6.2 Stocks

According to the AFC Uzbekistan Fund, 2021 was a transitional year on the road to significant capital
markets catalysts that will be seen in 2022. Earnings growth for companies listed on the Tashkent
Stock Exchange continued its strong performance last year.

AFC has also divided Uzbekistan’s capital market into three phases. It expects Phase II to occur
between 2022-2025. This phase should see certain state-owned enterprises (SOEs), what it calls the
“crown jewels” of Uzbekistan’s economy, being privatised through domestic IPOs and SPOs and
eventual dual listings abroad, likely in London. These companies include the national airline,
Uzbekistan Airways, one of the biggest gold mining companies in the world, Navoi Mining and
Kombinat, a leading copper producer, Almalyk Mining and Metallurgical Kombinat, and one of the
largest steel plants in Central Asia, Uzmetkombinat, among others. These listings should attract
significant foreign and local capital to the Tashkent Stock Exchange, increasing liquidity and interest in
the market.

"Phase III is expected to involve IPOs by private sector companies once the stock market is liquid and
has enough investor participants, both institutional and retail, to absorb larger share issues. “This
phase should overlap with Phase II and we are already seeing private sector companies expressing an
interest in eventual IPOs, which is highly encouraging," Scott Osheroff, an AFC analyst, said.

Odilbek Isakov, a Deputy Finance Minister, earlier announced the government’s plans to hold 15 IPOs
in the next three years, including IPOs of equity in five state-owned banks, three insurance companies
and metallurgical and other companies.

Isakov added that new financial products were to be released, including ETFs for gold, mortgage
bonds and sukuk.

The government is also planning to issue bonds linked to inflation, while the Uzbek and international
depositories will be connected.

20 Uzbekistan Outlook 2022 www.intellinews.com