Uzbekistan delays flagship airline IPO as reform drive deepens

Uzbekistan has delayed the IPOs of Uzbekistan Airways and Uzbektelecom to 2027, shifting away from earlier plans for a 2026 partial listing of the airline as part of its state-owned enterprise reform programme. The government says the delay reflects a focus on deeper restructuring across transport, aviation and telecoms, with reforms aimed at improving governance and operational performance before entering international capital markets. Uzbekistan Airways is undergoing a transformation programme with Franklin Templeton, targeting around US$120 million in additional annual operating profit and a valuation increase from about US$1.6 billion to US$2.3 billion ahead of any eventual listing. Uzbekistan has pushed back plans for the international listing of its national carrier, with the initial public offering of Uzbekistan Airways now expected in 2027 rather than 2026, according to senior government officials. Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov confirmed the revised timetable at a recent economic seminar, linking the delay to a broader programme of state-owned enterprise reform. Alongside Uzbekistan Airways, the planned share sale of Uzbektelecom has also been shifted to 2027. Both transactions are part of a wider effort to prepare strategic infrastructure companies for international capital markets. Earlier plans had pointed to a partial listing of 15 to 20 percent of Uzbekistan Airways by the end of 2026. That timeline has now been overtaken by what officials describe as a more comprehensive transformation agenda. Kuchkarov said reforms across transport, aviation and digital infrastructure were essential before companies in these sectors could be successfully privatised. He pointed to ongoing restructuring work, arguing that improved corporate governance and operational efficiency were necessary to attract long-term private investment. The airline is currently undergoing a transformation programme developed with Franklin Templeton, the US-based asset manager overseeing Uzbekistan’s National Investment Fund. The programme reportedly includes more than 100 measures aimed at improving performance. Officials say the changes could increase annual operating profit by around US$120 million and lift the company’s valuation from about US$1.6 billion to US$2.3 billion.