Uzbekistan is moving to bring some of its largest state-linked enterprises to public markets, with the national telecom operator Uztelecom emerging as the frontrunner for an international listing. The initiative, spanning telecommunications, aviation, banking, and energy, aims to draw in private and foreign capital while imposing the transparency and governance standards that public investors expect.
For international investors, this could open the door to some of Central Asia's most significant corporate assets. For Tashkent, it is a test of whether its capital-market reforms can extend beyond the London debut of its investment fund to a steady pipeline of listed companies.
Uztelecom leads the IPO pipeline
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. According to Marius Dan, CEO for Central Asia at Templeton Global Investments, Uztelecom is the furthest along in the potential IPO pipeline. The company is already listed on the Tashkent Stock Exchange, and UzNIF is weighing an international listing as well as an increase in the number of shares available domestically.
An international offering would allow a broader range of investors to buy shares and could provide fresh capital for future investment. Dan told Euronews that preparations include assessing Uztelecom's financial reporting, governance, and operational readiness. Five equity-adviser selection processes are also underway 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 publicly traded shares. A presidential decree calls for six UzNIF portfolio companies to be listed by the end of 2028, though the fund says no final decision has been made on the timing or sequence of individual transactions.
Governance overhaul across the portfolio
UzNIF and Franklin Templeton are also reshaping corporate governance across all 13 companies, from supervisory board composition to financial planning and performance reporting. “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, and 11 of the 13 companies now have supervisory boards where 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. These changes are crucial because a stock-market listing involves more than selling shares; companies 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.
Uzbekistan's broader economic ambitions are also visible in its deepening ties with partners like South Korea, with a $12bn project pipeline announced earlier this year. As the country pushes to modernise its economy, the success of these listings could signal whether Central Asia's largest market is ready to integrate more deeply with global capital markets.
