Imagine running a successful business and needing funds to expand. Instead of loans, you offer shares to the public.
That's how an Initial Public Offering (IPO) works. Now, Uzbekistan is applying this to its largest state-owned enterprises via the People’s IPO program.
Launched in 2024 by presidential decree, the initiative aims to reduce state involvement in commercial sectors and boost private participation.
The goal? Let citizens become shareholders in national companies.
Unlike traditional privatisation, this model prioritizes transparency and public access. Shares are offered on the stock exchange, with citizens getting priority allocation. The state keeps a strategic stake while increasing public ownership.
The first offering was on the Uzbek Republican Commodity Exchange (UZEX), with shares priced between 12,900 and 18,000 Uzbek soums.
Applications surged-12,600 submitted, 11,298 approved. Total investment hit €2.95 million, with oversubscription reaching 128%.
Brokers say the launch marked a turning point. Shareholders grew from 2,200 to 13,600 after the Secondary Public Offering (SPO).
Digital platforms like GoInvest enabled broad participation, though infrastructure struggled under high demand.
Experts say this shift encourages financial literacy and long-term thinking among investors.
Similar models exist in Kazakhstan, Poland, and the UK, showing a global trend toward public share offerings.
This move marks a gradual shift toward a more inclusive financial culture in Uzbekistan.