We do not often write about this service of the executive office of JSC “Almalyk MMC”, although all the workers of the plant are interested in its activities, and several thousands of them, who are shareholders of the enterprise, especially. It is here that you will be told exactly the value of all the assets of our joint-stock company, they will tell you about the rented and leased premises of the AMMC and much more. After all, all this is under the jurisdiction of the Corporate Relations and Investor Relations Service... What significant events marked the work of the plant through the prism of the work of its team? About this and many other things - in an interview with the head of the service Hasan ABDUNABIEV.

- Tell us, please, what does your service do?

- The sphere of responsibility of the corporate relations and investor relations service, first of all, includes the organization and implementation of the Company's activities in the securities market. We also ensure the implementation of the statutory provisions, protect the rights of shareholders and their interests, interact with stock market participants, monitor the accounting and movement of shareholders, shares and other securities of the Company, participate in the implementation of a set of measures aimed at introducing and implementing in JSC "Al-Malyk MMC" of modern corporate governance, management, in the organization of work on the assessment and insurance of property, cadastral updating and registration of buildings and structures of the plant.

In addition, we work in the field of property relations - rent, privatization. Our duties include control over the efficiency of use and management of the Company's property, including those located abroad. So, very schematically, we can outline the scope of our responsibilities.

- Operations in the securities market - this direction in recent years has increasingly become another source of income for those who understand the intricacies of stock exchange games. But this is for very few. At the same time, several thousand workers of the plant are still participants in these complex processes, being shareholders of JSC “Almalyk MMC”. And, of course, they are interested in the question: why, with the significant profit achieved by AMMC over the past few years, the amount of dividends remains the same? How can our shareholders feel the success of their enterprise?

- Firstly, for two years now our joint-stock company has been paying dividends for every six months of work. And secondly, this year, as a result of capitalization, the number of shares held by each owner of preferred shares has been doubled. The authorized capital was increased due to the net profit received in 2018, 2019 and 2020 through an additional issue of shares.

So, as of February 9, 2022, the authorized capital of JSC “Almalyk MMC” increased from 643,414,256,256 UZS (164,387,904 shares) to 2,967,813,060,296.00 UZS (758,127,822 shares). That is, if you had 100 shares, then after the first capitalization their number doubled – up to two hundred, after the second capitalization – both were held with the ratio of 1:1 – their number reached 400 pieces. Accordingly, the dividends received on shares for each shareholder will also be greater. The nominal value of ordinary and preferred registered shares today is 3914 UZS each.

- Information appeared on the network that dividends in the amount of 217.44 UZS are paid to resident shareholders for each share. What are these payments, because before the amount of dividends was much higher?

- Shareholders should be aware that these payments are not dividends, but an additional payment on shares, formed due to the difference in tax with non-resident shareholder. These are the tools we are talking about. The decision on this was made by the State Assets Management Agency as the owner of all ordinary shares of JSC “Almalyk MMC” on February 2 this year. at the expense of 1.64 trillion UZS allocated at the end of 2020 for development of the company and accounted for in the account of retained earnings of previous years.

The amount of dividends on shares for 2021 will be determined at the general meeting of shareholders, which is scheduled for the summer of this year. And in September 2022, preferred shareholders will receive dividends based on the results of capitalization, that is, taking into account the increased number of shares.

- The Decree of the President of the Republic of Uzbekistan “On measures for the further development of the capital market” dated April 14, 2021 provides for our joint-stock company to enter an IPO (initial public offering) on the Tashkent Stock Exchange, and by 2023 - on international stock exchanges. How will this process take place?

- The joint-stock company "Almalyk Mining and Metallurgical Combine" was given the task of entering the capital markets (IPO). This is an initial placement of shares, that is, the process of selling shares by a company on the stock market, as a result of which the company, in this case, AMMC, becomes public, and the securities become available to a wide range of investors (before that, shares of JSC “Almalyk MMC” were subject only to private placement). This process is complex and involves the involvement of a wide range of specialists: underwriters, banks, lawyers who help us evaluate our investment attractiveness and set stock prices, brokers, auditors, PR services, lawyers and many others.

In order to prepare for the issue of international shares of JSC “Almalyk MMC”, a lot of work has been done. Here are just a few of her points. The main thing is that the fair value of AMMC's fixed assets was assessed by the appraisal company Grant Thornton Valuation in accordance with international valuation standards, the mineral resources of the plant were confirmed by SRK Consulting specialists in accordance with the JORC Code, with the involvement of the Deloitte auditing company, a financial and economic model of the plant was developed, an investment model was developed and technological concept for the development of the enterprise until 2028 by HATCH, an analysis of the readiness of AMMC to enter international capital markets was carried out together with KPMG consultants, concepts and roadmaps were developed for reforming the AMMC in order to prepare the plant for an initial public offering, measures are being taken to transfer of non-core and unusual assets of the plant, etc.

A strategic development and transformation service was created in the structure of the plant, a position of a corporate consultant was introduced, a department for compliance and monitoring of production and financial risks was created.

It should be noted that, according to preliminary estimates, foreign banks predict a successful placement of our shares. At the same time, I emphasize that for the plant, the sale of shares is not just an alternative to debt financing, which burdens the company with regular interest payments, it is a step to a new level: along with the status of a public company, the company receives a lot of other advantages. Among them - improving the reputation with partners and creditors; greater business transparency, which increases efficiency; the ability to determine the market price of the business.

All this in the future will help the plant to carry out secondary placements to finance new investment projects, and the liquidity of securities and the ability to determine the market price will allow using their own shares as an alternative to money.

- You said that your department also handles leasing and privatization. What is being done in this direction?

- According to the Decree of the President of the Republic of Uzbekistan “On measures to simplify the procedure for conducting electronic online auctions, increase transparency and guarantee reliable protection of the rights of their participants” dated July 24, 2021, the AMMC issued an order to lease non-core and unusual assets by placing lots to the electronic portal "E-auksion", where the participants are given the right to submit their price proposal for the acquisition or lease of the object. The management of the plant soon plans to lease out more than 50 non-core empty facilities to entrepreneurs in the city of Almalyk and the Tashkent region, with the obligatory condition for creating new jobs.

- Judging by what has been said, the service is doing a significant job. What skills are needed in it?

- Yes, in recent years, universities have begun to train specialists who work with securities, who know the intricacies of exchange processes. But our service, which was reorganized from the securities department of AMMC, employs people - only five people with decades of experience. And their training took place simultaneously with the introduction of all innovations in the processes of corporatization.

A specialist of our service is a person who has the skills of exchange trading, knowledge of the English language, valuation activities, etc. at AMMC events.

Today, the Almalyk Mining and Metallurgical Combine Joint Stock Company is at an important stage in its further development, preparing to enter the global securities market. And we will do everything in our competence to ensure that this process goes in the best way for the enterprise.

Conversation by Lyudmila FILIPPOVICH