The Mongolian Stock Exchange plans to issue an IPO, offering 34% to the public and raising MNT 11.9 billion. MSE has priced the share at MNT 100. Initial market orders for shares will continue from December 26 to 30, 2022. Mongolian Stock Exchange is the first to launch an IPO within the government’s policy to make state-owned enterprises open to the public.
Shareholder structure
Source: Mongolian Stock Exchange
The current owner of the MSE is the Ministry of Finance and the exchange will offer 34% to the public, of which up to 90% will be offered to strategic investors and a maximum of 5% will be offered to one strategic investor. The total assets of MSE hiked 4.8 times during the last six months, reaching MNT 23.7 billion. MSE’s net profit was MNT 3.2 billion last year.
After the approval of regulations for online trading of export coal, MSE will start spot trading coal in 2023. In addition, MNT 12.3 trillion worth of securities are expected to be issued on MSE from 2023 to 2027.
The value is calculated based on the estimated cash flow in the coming years. The government’s New Recovery Policy, Banking law amendments, and Regulations for online trading of export coal had a positive impact on the higher value of MSE’s shares.