Investors can purchase 2.2 million shares of Qoqand Mechanical Plant
Tashkent, Uzbekistan (UzDaily.com) -- A national SPO will soon start in Uzbekistan - the collection of applications from investors for the purchase of shares of the Qoqand Mechanical Plant.
It should be noted that the Government of Uzbekistan has decided to put the Qoqand Mechanical Plant shares on the stock exchange.
The initiator of the public offer is Uzneftegazmash, the organizer of the public offer is the National Bank for Foreign Economic Activity of the Republic of Uzbekistan, and the organizer of the subscription campaign is Freedom Finance, which signed a partnership agreement with the Tashkent Stock Exchange in September this year.
Qoqand Mechanical Plant is the leader of the engineering industry of Uzbekistan and a key supplier of Uzbekneftegaz. The company produces more than 50 types of products, including equipment for the oil and gas and chemical industries. Now Uzneftegazmash is the main shareholder of the Qoqand Mechanical Plant.
As part of the secondary placement (SPO), it is planned to sell 2.2 million shares, which will reduce the share of Uzneftegazmash to 64.08% and increase the share of other shareholders to 35.92%.
It is expected that funds received through SPO will be used to upgrade, expand and modernize enterprises, as well as to conquer new markets.
“Over the past 5 years, revenues of the Qoqand Mechanical Plant have been showing steady growth, reaching a record 84 billion soums in 2017. Net profit in 2017 increased by 33% against 2016, and dividends over 5 years increased by 2.7 times. We expect a rise in the share price caused by the Qoqand Mechanical Plant’s entry into the markets of Kazakhstan, Russia, Kyrgyzstan and Turkmenistan. In addition, it is planned to expand the product line and launch new services. Sustained production growth will allow investors to ensure a good yield,” the chairman of the board of Qoqand Mechanical Plant Sh. Yuldashev said.
According to analysts, the shares of the Qoqand Mechanical Plant may increase in price by one and a half times. Entry into new markets and lower costs by upgrading production lines will increase the company’s profitability.
“With the revival of the stock market, the residents of Uzbekistan have new investment opportunities. In the US, 78% of people keep money in stocks, not in accounts and deposits. In Korea, this figure is 30%, and in Uzbekistan - only 1%. This year, Uzbek investors have earned on shares of the Quartz plant, which in six months has increased in price by 64%. Shares of Qoqand Mechanical Plant - not less profitable investment. They can be purchased for speculative purposes, to subsequently earn on the growth rate, and for investment, to receive income in the form of dividends. Since 2013, from 13% to 15% of net profit goes to the payment of dividends, in 2017 their value reached 1.3 billion soums. The main customers of the Qoqand plant are companies that are part of the national holding company Uzbekneftegaz, which automatically ensures its reliability and stability,” the founder and owner of Freedom Finance Timur Turlov said.
The shares of Qoqand Mechanical Plant can be purchased by individuals and legal entities, as well as by foreign investors. To do this, investors need to contact an investment mediator who will open an account for the investor on the Tashkent Stock Exchange, will provide financial information for making a decision and submitting an application for participation in the auction. Applications are accepted until the end of December 2018.