Avesta Investment Group is honored to announce that consortium led by our company is announced as a winner of the tendering procedures for the role of underwriter of the Uzmetkombinat JSC additional shares issue.

The additional shares issue will be organized both to finance the significant investment program of the Uzmetkombinat JSC, and as preparation for the international placement of the company’s shares in 2023-2025 in accordance with the program for the development of the capital market for 2021-2023, approved by Presidential Decree #6207 “On the measures for further development of the capital market” dated of April 13th, 2021.

Moreover, noting the significant role of the securities issued by the Uzmetkombinat JSC as an important element in the local capital market – more than 5% of the Tashkent Stock Exchange turnover in 2021, with more than 3.3 times growth of the ordinary shares quotes -, this placement will be an important step in the market development process, helping to attract new groups of investors to the market, primarily local retail investors, as well as local and foreign institutional investors.

Strengthening the public status of the company, increasing the free-floating share with an additional number of local private and foreign investors will contribute to the process of improving of the quality of corporate governance in the company and will become an important milestone for the privatization process in the Republic of Uzbekistan.

Avesta Investment Group is the pioneer of the Uzbek capital markets with almost 20 years of experience. Company was engaged in the debut corporate bond issues of the leading institutions as Almalyk Mining JSC and Uzbektelecom JSC.

The company hopes that the planned additional share issue will be the first major such precedent in the history of the capital market in Uzbekistan, and will open the market and the company in particular to a wide range of investors.

 

About the companies:

Uzmetkombinat JSC (RSE:UZMK, UZM1) is the leader of ferrous metallurgy in Uzbekistan, starting the history since 1944. The plant has an installed capacity of more than 1 million tons of rolled metal per year, and is also implementing a large-scale investment program to increase capacity to 2.5 million tons during 2021-2026. The enterprise employs more than 12 thousand people, and the products are sold in all regions of the country and are exported to various countries of the World, including Europe. More than 80% of the company’s shares are owned by the State. A significant part of the shares are traded on the Tashkent Stock Exchange – common and preferred shares of the company have the status of highly liquid, and the company’s market capitalization exceeds 7 trillion UZS (about $625 million).

Avesta Investment Group LLC is a leading investment banking firm founded in Tashkent in 2003 and currently operating in the Central Asian and Caucasus region. The firm provides financial and M&A advisory services, arranges debt and equity capital, and conducts equity and economic research. The basis of company’s clientele are foreign portfolio and strategic investors, as well as local private companies. Since 2010, the company has been the exclusive partner for Uzbekistan of the New-York based international brokerage firm AuerbachGrayson that operates in more than 120 countries.