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Dividend payments volume of Uzbekistan's 'IPO pioneer' revealed (Exclusive)

Business Materials 21 November 2018 08:55

Baku, Azerbaijan, Nov. 21

By Fikret Dolukhanov – Trend:

Uzbekistan’s Kvarts JSC paid shareholders 44.11 billion soums out of net profit of 88.23 billion soums, the Fergana Regional Department of the Center for the Coordination and Development of Uzbekistan’s Securities Market (CSM) told Trend on Nov. 20.

The department noted that the company's shares were sold through the initial public offering (IPO) for the first time in Uzbekistan, with the priority of the highest proposed purchase price, on the basis of the corresponding resolution of the Cabinet of Ministers of Uzbekistan of May 10, 2017.

“The sale of shares of Kvarts JSC increased the population’s interest in the stock market and became one of the most important steps in its development. Due to the demand for the shares of Kvarts JSC being very high, citizens who initially purchased shares, receive income in the form of dividends, as well as by selling shares at a higher price,” the dep’t said.

The dep’t added that the development of the stock market has a significant impact on the real incomes of economic entities and the population, because companies can finance their innovative projects, while other market participants can buy and sell securities, and also make a profit in the form of dividends and interest.

Fergana region’s CSM department noted that the total number of joint-stock companies in the region is 43. The total number of shares issued by joint-stock companies of the region is 60.09 billion amounting to 693.12 billion soums.

Since Dec. 5, 2017 over 4.5 million shares of the Kvarts JSC have been put up for public sale. Applications of individuals and legal entities are accepted by investment intermediaries (brokers) with the price ranging from 3,000 soums to 9,100 soums per share.

Kvarts JSC was established in 1975 and is the largest enterprise for the production of sheet glass, glass for the automotive industry, glass jars, bottles and refractory materials in the country.

The company is also the only manufacturer of building glass and meets more than 60 percent of the country's need for this material. The market share of the company in production of the glass jars is over 95 percent, of the glass bottle – up to 50 percent.

Over the past three years, Kvarts JSC has consistently allocated 46-50 percent of its net profit to pay dividends.

Since the beginning of the year, 9,034 securities transactions for a total amount of 571.2 billion soums have been concluded at the Toshkent RSE.

Some 8.5 billion securities of 115 issuers were used in the trades.

(8277.53 soums = 1 USD on Nov. 20)

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