Strict Consultant Selection Process Outlined for Uzbekistan Airways IPO
The consultants tasked with guiding the highly anticipated initial public offering (IPO) of Uzbekistan Airways will be chosen through a rigorously structured selection process. The press service of the Uzbekistan National Investment Fund (UzNIF) recently confirmed the details of this procedure in a statement to Kursiv Uzbekistan.
Candidates vying for the advisory role will be evaluated against a strict set of criteria. The fund will actively assess their previous industry experience, historical track record, the overall quality of their technical proposals and their proposed fee structures.
UzNIF highlighted that the groundwork for the airline’s market debut is being supported by global asset management firm Franklin Templeton. This extensive preparation phase involves the rollout of more than a hundred specific initiatives designed to maximise business efficiency before the company goes public.
According to the fund’s press service this comprehensive approach is expected to deliver significant long-term benefits. The primary goals include ensuring greater corporate transparency, enhancing operational and financial performance and strengthening investor relations through the development of robust capital market practices.
As part of the initial phase specialists will conduct a thorough assessment of the national carrier’s readiness to float its shares on the stock exchange. Any operational or financial shortcomings identified during this audit will be systematically addressed over the coming months.
Valuations and historic precedents
By undertaking such thorough preparation the airline hopes to inspire strong investor confidence and secure a higher market valuation when the shares are eventually listed. However UzNIF was careful to note that the final pricing of the company during the IPO will ultimately depend on prevailing market conditions, investor demand and the overall success of the ongoing transformation programme.
To illustrate the potential scale and success of such an offering UzNIF pointed to the historic IPO of Romanian energy giant Hidroelectrica. That particular listing achieved a massive valuation of $10.6 bn. During the process Fondul Proprietatea, another investment vehicle managed by Franklin Templeton, successfully sold a 20% stake for more than $2.1 bn.
The push to privatise a portion of the state-owned carrier was officially announced in mid-June of this year when it was revealed that UzNIF would spearhead the preparation efforts. Current strategic plans suggest that up to 20% of the airline’s securities will be made available to investors on the open market.
