As it is known, the Ministry of Finance has previously announced plans for organising IPOs and SPOs of 15 blue-chip Joint Stock Companies in local and foreign stock markets in 2021-2023 according to the Presidential Decree PF–6207 dated April 13, 2021 and has briefed on the ongoing work to realise them.
On the 9th of March in this year, one of these companies – “UzAuto Motors” JSC – announced an official tender for selection of a consortium of underwriters to organise IPO of the company in local and foreign stock markets in 2022-2023.
To identify potential investors and get an update on current market conditions and feedback from bank-underwriters organizing IPO process, the Company sent a request for feedback to foreign investment banks such as JP Morgan, Citi, Credit Suisse, Raiffeisen Bank International, Societe Generale, Natixis and Gazprombank, as well as local commercial banks and brokers in October-November 2021.
Based on the feedback provided by foreign and local investment banks and brokerage firms, UzAuto Motors JSC together with the Ministry of Finance developed tender documents embedded with the size and terms and conditions of the IPO transaction and announced the official tender to select the consortium of underwriters. In this tender, the foreign banks and investment intermediaries conducting underwriting activities are also allowed to participate along with local underwriters.
For information: according to the Presidential Decree PP-90, dated, January 17, 2022, until December 31, 2023, foreign banks and investment intermediaries without obtaining a separate license are allowed to carry out underwriting activities in Uzbek capital market by formulating a consortium with local legal entities (underwriters) that have a minimum base capital of not less than 500 million soums.
In accordance with the Law on Public Procurement, the official tender has announced on the website of the Uzbek Commodity Exchange website: https://etender.uzex.uz/lot/43257. The deadline for submitting applications is 11-04-2022 13:00.
The IPO of the UzAuto Motors JSC in local and foreign stock markets enables the company to further expand its activities with the implementation of new investment projects, increases its investment attractiveness, improves corporate governance as per international standards and enhances transparency and accountability. Also, this IPO supplies, in particularly, the local capital market with high quality securities that are more attractive for investors and facilitates an improvement of market liquidity.
For information: “UzAuto Motors” JSC was founded in 1993 and is the only major automobile manufacturing company in Uzbekistan and Central Asia. Today, about 360 thousand 12 types of car models are produced per year by the company. Its main production plant is located in the city of Asaka, Andjon region, the eastern point of Uzbekistan, where Chevrolet Spark, Nexia-3, Cobalt and Lacetti models are produced and Damas and Labo cars are produced in Pitnak, Khorezm region in the west of Uzbekistan.
Today, the company has more than 11 thousand employees (more than 18 thousand including local component manufacturing enterprises).
By the end of 2020, the company generated revenue of 2,624 million dollars through the production of 293 thousand cars, of which 177 million dollars were exported.
With the aim of financing the Chevrolet Onix and Tracker car production project, the company successfully placed its first corporate international bonds on the London Stock Exchange for a period of 5 years, amounting to 300 million US dollars, in April 2021.
