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AGMK moved plans to enter the stock exchange. Local IPO will be held this year

Earlier, the company’s deputy chairman announced plans to place shares in Uzbekistan by the end of 2024.

Almalyk Mining and Metallurgical Combine are preparing to list its shares on the stock exchange (IPO). This follows from the data of the tender section of the UZEX website.

The company is looking for an underwriter for the initial placement of securities on local and foreign sites. Now 98.8% of its shares are owned by the state represented by the AUGA.

According to the annexes, AGMK will list up to 5% of its shares on the Tashkent Stock Exchange by the end of 2022. Also, during 2023-2024, the plant will hold a foreign IPO – up to 25% of the company will be put up for it.

The platform for foreign placement and its exact volume will be selected based on the recommendations of the underwriter. It is stipulated that the IPO period can also be shifted depending on market conditions.



Applicants will be judged on a number of criteria. This includes experience on stock exchanges (in particular, in the CIS and in the metallurgy industry), qualifications for working with investors, working out an IPO plan with calculations of its term and volume, a list of services, and so on.

Foreign companies can only participate in the form of a consortium with a consulting firm holding an Uzbek license. The winner must comply with confidentiality requirements.

The starting price of the services offered by Uzavtosanoat is $9 million , the completion period will be 365 days (1 year). Applications are accepted until June 7th .

Talks about the IPO of the plant have been going on for more than a year. Back in January 2019, Shavkat Mirziyoyev decided to reform the mining and metallurgical industry. The shares of AGMK were supposed to be listed on the stock exchange in 2023.

In November 2020, it became known that the plant had attracted international consultants for the transformation. Specifically, IPO readiness was assessed by KPMG. In addition, the plant plans to issue Eurobonds for $500 million.

As Abdulla Azizov, deputy head of the board of AGMK, said at a recent Tashkent investment forum, the placement on the local stock exchange was intended to be held in 2023-2024. Based on its results, they would prepare for a foreign IPO.

At the moment, only two large companies in Uzbekistan have carried out an IPO. The first was Quartz at the turn of 2017-2018, the second was Jizzakh Plastmassa from the end of 2019 – to the beginning of 2020.

Several other companies are preparing for an IPO. In particular, Uzmetkombinat plans to conduct an initial issue of shares in 2023. UzAuto Motors is looking for an underwriter to offer a 5% stake on the local stock exchange by the end of 2022.

In April, the president instructed to speed up the privatization of the largest state-owned companies. Thus, the IPO of UzAuto Motors and Uzairways should take place before the end of the year.


Source: www.spot.uz