According to the legislation of the Republic of Uzbekistan, PKM No.268 dated May 10, 2017, the initial public offer (IPO) is the placement by the joint stock company (initiator of the IPO) of an unlimited number of investors of additional shares on the stock exchange. The abbreviation IPO stands for Initial Public Offering and is literally translated as the initial public offer.
Through IPO, the accumulation of capital of a large number of investors of legal entities and individuals takes place, as well as an objective market price for the company’s shares.
After entering the stock exchange, the company becomes listed, and therefore public, its shares are freely traded on the stock exchange, any investor can freely buy or sell these securities.
By the Decree of the President of the Republic of Uzbekistan dated January 17, 2017 No.UP-4933 “On measures to further simplify procedures and accelerate the implementation of state-owned objects for use in entrepreneurial purposes”, it was instructed to introduce widely practiced forms of state property sale in international practice, aynan birlamchi (IPO) va ikkilamchi (SPO) public offering of shares to the public and business entities held on the stock exchange.
Presidential Decree No. UP-4947 of February 7, 2017 approved the “STRATEGY OF ACTION for the five priority development directions of the Republic of Uzbekistan in 2017-2021”, in the official commentary to this Decree it is reported that the third direction is “Development and liberalization of the economy” specified in the “STRATEGY OF ACTION for the five priority areas of development of the Republic of Uzbekistan in 2017-2021” includes also measures to protect private property, financial markets, modernization of agriculture, development of the jewelry industry, preparation Sheep to the primary placement of shares (IPO) of individual national enterprises on foreign reputable stock exchanges.
The secondary public offer (SPO) is the sale by a shareholder (the initiator of SPO) of the shares belonging to him to an unlimited number of investors on the stock exchange. SPO, unlike IPO, does not affect the size of the company’s share capital. But at the same time, such placement still makes the company public, that is, whose shares are freely traded on the securities market. In addition, the number of shareholders will increase, which makes the shares liquid.
SPO is a proposal of already existing shares belonging to someone taken from the secondary market. As a rule, the SPO sells its securities to the company’s founders, that is, the original shareholders.
LLC “NAYMON INVEST CONSULTING” can act as an underwriter or broker for IPO or SPO.