Underwriting and consulting services
THE AMOUNT RAISED THROUGH THE CAPITAL MARKET
IPO
224.3
BILLION MNT
FPO
380.7
BILLION MNT
BOND
1.9
TRILLION MNT
HIGHLIGHTED PROJECTS
THE FIRST ULAANBAATAR CITY BOND OF MONGOLIA
500.0
BILLION MNT
MONGOLIA'S FIRST GREEN BOND
17.0
BILLION MNT
MONGOLIA'S FIRST USD AND MNT BOND
1.1
TRILLION MNT
MONGOLIA'S LARGEST M&A DEAL
338.0
BILLION MNT
MONGOLIA'S FIRST MNT-DENOMINATED CLOSED BOND PEGGED TO THE USD EXCHANGE RATE
21.2
BILLION MNT
MONGOLIA'S FIRST DUAL LISTING
14.25
BILLION MNT
ХААН БАНК IPO
ТЭРГҮҮЛЭХ АНДЕРРАЙТЕР БиДиСЕК ҮЦК ХК
IPO
FPO
IPO – INITIAL PUBLIC OFFERING
A Limited Liability Company (LLC) and a Closed Joint Stock Company (CJSC) can expand their business by raising long-term financing and becoming a publicly traded company through an Initial Public Offering (IPO).
With years of experience and a team of skilled professionals, we collaborate with national companies to expand their business operations and raise capital from the securities market. We have provided advisory services to over 30% of companies that have successfully conducted an IPO on the Mongolian Stock Exchange (MSE).
With years of experience and a team of skilled professionals, we collaborate with national companies to expand their business operations and raise capital from the securities market. We have provided advisory services to over 30% of companies that have successfully conducted an IPO on the Mongolian Stock Exchange (MSE).
Highlighted project
We served as the lead underwriter for the IPO of KHAN Bank JSC and successfully organized the primary market offering from April 13 to April 19, 2023.
The primary market offering received orders totaling MNT 336.4 billion from 29,345 investors, exceeding the target amount by 183.2%.
The primary market offering received orders totaling MNT 336.4 billion from 29,345 investors, exceeding the target amount by 183.2%.
KHAN Bank
The Largest on the MSE
High-Value IPO
High-Value IPO
183.4
Billion MNT
Significance and Key Features
Mongolia's Largest IPO
The IPO with the Most Investors
The Historic IPO that Raised the Valuation of the Mongolian Stock Market to MNT 10 Trillion
Our experience
KHAN Bank JSC
183.4
Billion MNT
2023 он
Bodi Insurance JSCК
183.4
Billion MNT
2023 он
Ard Insurance JSC
5.25
Billion MNT
2020 он
Erdene Resource JSC
2.49
Billion MNT
2018 он
E-Trans Logistics JSC
0.92
Billion MNT
2018 он
Silicate JSC
3.65
Billion MNT
2012 он
HiBioil JSC
0.4
Billion MNT
2011 он
Nako Fuel JSC
0.27
Billion MNT
2008 он
Khökh Gan JSC
3.2
Billion MNT
2008 он
BDSEC JSC
0.75
Billion MNT
2008 он
TuuL Songino Water Resources JSC
13.2
Billion MNT
2007 он
Jenko Tour Bureau JSC
8.3
Billion MNT
2006 он
MonInjBar JSC
1.5
Billion MNT
2006 он
Mongol Shiltgeen JSC
0.8
Billion MNT
2005 он
Criteria for classification of joint-stock companies
Main Criteria
I
Category
company
company
II
Category
company
company
III
Category
company
company
Year of stable operation
+3
+2
-
Financial reports
3 years
2 years
-
Market capitalization
+10
Billion ₮
+1
Billion ₮
Consider the company's proposal
Sales revenue
+5
Billion ₮
-
-
Net profit
+1
Billion ₮
+100
Million ₮
-
Net working capital
-
Must be sufficient within 12 months of registration
-
Public free float
+25%
+25%
-
Securities issuance process stages
FPO – Follow-On Public Offering
A joint-stock company can raise long-term financing from the capital market by issuing additional shares.
We have conducted the most FPOs on the Mongolian Stock Exchange, accounting for approximately 62.5% of the market.
We have conducted the most FPOs on the Mongolian Stock Exchange, accounting for approximately 62.5% of the market.
When determining the price of additional shares to offer, the market price will be considered, which may result in lower costs compared to an IPO.
As a joint-stock company operates under the regulations of the FRC and the MSE, the time required for review and preparing the securities prospectus when issuing additional shares may be shorter compared to conducting an IPO.
Highlighted project
Erdene Resource Development Corporation, the first company to be dual-listed on the Mongolian Stock Exchange, offered 2.7% of its total shares, or 3,898,900 shares, to the public in both an offering and a follow-up share issuance, for which we served as the underwriter.
Erdene Resource
Mongolia's First
Dual Listing
Dual Listing
17.39
Billion MNT
Project Significance
Opportunities for Mongolian citizens to benefit from mining and natural resources
By granting local residents share ownership, it opens up opportunities for them to participate in shareholder meetings, cast votes, and access transparent information.
It provides an opportunity to disseminate knowledge and information about the capital market to local residents.
By enabling the conversion of shares between foreign exchanges, it enhances the demand for shares and improves liquidity.
Our experience
Erdene Resource
14.25
Billion ₮
2021 он
BDSEC JSC
4.89
Billion ₮
2014 он
Sharyn Gol JSC
23.75
Billion ₮
2011 он
Nako Fuel JSC
0.27
Billion ₮
2010 он
HiBioil JSC
0.98
Billion ₮
2008 он
MonInjBar JSC
1.0
Billion ₮
2007 он
Stages of the Follow-On Public Offering (FPO) Process
AMOUNT RAISED FROM THE CAPITAL MARKET
PUBLIC
BOND
BOND
1.6
TRILLION ₮
PRIVATE
BOND
BOND
39
BILLION ₮
Public bond
Private bond
Public bond
A public bond is a capital market product similar to a bank loan, characterized by flexible interest payments and principal repayment at the end of the term. We have served as the underwriter for 7 bonds on the Mongolian Stock Exchange, including the largest and first U.S. dollar-denominated bond in Mongolia's capital market history, the open bond project of Erdenes Tavantolgoi Closed JSC, where we raised MNT 1.1 trillion.
ADVANTAGES OF PUBLIC BONDS
Liquid
Investors have the opportunity to receive regular returns.
Regulated by the FRC and the MSE, offering low risk to investors.
Criteria for the Registration of Public Bonds
Meets the criteria for the second category of stock listing.
No overdue obligations or court-ordered enforcement of debts under loan, guarantee, or surety agreements.
The issuer must have been engaged in its main operations continuously for at least 3 years and possess sufficient collateral assets.
Highlight Project
It aims to implement major projects and programs of strategic importance, such as the construction of the Tavantolgoi-Zuunbayan railway, a coal processing plant, and the Tavantolgoi thermal power plant.
ERDENES TAVANTOLGOI
MONGOLIA'S LARGEST
HIGH-VALUE COMPANY'S
BOND
HIGH-VALUE COMPANY'S
BOND
1.1
TRILLION TUGRIK
Project Benefits and Significance
The potential to transport mining products at half the cost.
Financing infrastructure projects of strategic importance.
Reduction in coal transportation costs and increased exports.
Increasing the activity of the capital market and fostering a positive perception among the public.
Our Experience
Mayor of the Capital City
500.0
BILLION MNT
2024 он
Khaan Bank JSC
17.0
BILLION MNT
2024 он
Just Agro LLC
4.4
BILLION MNT
2011 он
Niislel Urgoo JSC
0.5
BILLION MNT
2008 он
MonInjBar JSC
1.5
BILLION MNT
2005 он
Пума Групп ХХК
1.0
BILLION MNT
2004 он
Private Bond
To secure the necessary financing in a relatively short period, a company can offer closed bonds to professional investors on the over-the-counter (OTC) market. In August 2021, the first OTC debt instrument was registered, and we have successfully raised MNT 39 billion through several closed bond projects. Notably, we worked on Mongolia’s first MNT-USD pegged closed bond project for Khuren Tolgoi Coal Mining LLC.
ADVANTAGES OF PRIVATE BONDS
Offers higher returns to investors compared to public bonds.
Issuing a closed bond incurs relatively lower costs compared to a public bond.
With more flexible criteria, it allows companies to raise the required financing within a shorter period.
Projects We Have Completed
Tsogts Zeel NBFI LLC
1.5
BILLION MNT
2024 он
City Oil LLC
3.0
BILLION MNT
2024 он
Munkhiin Useg LLC
3.0
BILLION MNT
2022 он
Zasagt Khaan LLC
8.8
BILLION MNT
2022 он
Khuren Tolgoi Coal Mining LLC
21.2
BILLION MNT
2022 он
BID Financial Group
1.5
BILLION MNT
2022 он
Altan Ord
1.3
BILLION MNT
2015 он
Yokozunanet LLC
0.4
BILLION MNT
2008 он
ABOUT CONSULTING SERVICES
M&A – Providing consulting services for mergers and acquisitions (M&A) activities.
Consulting and information related to company restructuring.
Assessing and advising on the most suitable methods and forms of financing based on the company's characteristics.
Corporate governance consulting and information.
Organizing shareholder meetings.
In 2018, Achit Ikht LLC established Achit Zes Closed Joint-Stock Company, granting its employees and the employees of Erdenet Mining Corporation high-yield equity ownership.
In 2018, Achit Ikht LLC established Achit Zes Closed Joint-Stock Company, granting its employees and the employees of Erdenet Mining Corporation high-yield equity ownership.,
BDSEC JSC provided consulting services for this project and successfully completed it in 2021 when the Central Securities Depository delisted the transaction.,
BDSEC JSC provided consulting services for this project and successfully completed it in 2021 when the Central Securities Depository delisted the transaction.,
Features and Significance,
Opportunities for company employees to benefit from the success of their business.
Good practices of corporate social responsibility in major national companies.
Opportunity to earn higher returns compared to commercial banks.
The company has been organizing shareholder meetings for companies listed on the Mongolian Stock Exchange annually as part of its investment advisory services. In this context, www.agm.mn By developing the web application in-house, the company has enabled the online organization of shareholder meetings.
Companies that have organized shareholder meetings in the last 3 years.
BDSEC JSC
Tavantolgoi JSC
Mongolian Stock Exchange JSC
Khan Bank JSC
APU JSC
Monlogistics JSC
Bogd Bank JSC
Bodi Insurance JSC
Gazar Shim Uildver JSC
Erdenes Mongol LLC
Erdene Resource Development Corporation JSC
Goviin Ondor JSC
E-Trans JSC
Bayanteeg JSC
Calculator
Funds to be raised or Amount to be raised
Base fee
2,000,000 *
/0.075%**/ 0 ₮
Underwriting fee
0 ₮
Total payment amount:
127,000,000 ₮
* Fee for receiving and reviewing application by the MSE (Mongolian Stock Exchange)
** Fee for securities registration service / Calculated with average percentages for I, II, and III categories/
*** The fee will be calculated as a certain percentage of the amount raised.
**** The fee for preparing securities documentation depends on the scope of work.
** Fee for securities registration service / Calculated with average percentages for I, II, and III categories/
*** The fee will be calculated as a certain percentage of the amount raised.
**** The fee for preparing securities documentation depends on the scope of work.
Funds to be raised or Amount to be raised
Base fee
2,000,000 *
/0.1%**/ 0 ₮
Underwriting fee
0 ₮
Total payment amount:
127,000,000 ₮
* Fee for receiving and reviewing application by the MSE (Mongolian Stock Exchange)
** The fee for securities registration will be calculated as follows: 0.1% for amounts up to 20 billion MNT, 0.08% for amounts between 20 to 50 billion MNT, and 0.064% for amounts exceeding 50 billion MNT.
*** The fee will be calculated as a certain percentage of the amount raised.
**** The fee for preparing securities documentation depends on the scope of work.
** The fee for securities registration will be calculated as follows: 0.1% for amounts up to 20 billion MNT, 0.08% for amounts between 20 to 50 billion MNT, and 0.064% for amounts exceeding 50 billion MNT.
*** The fee will be calculated as a certain percentage of the amount raised.
**** The fee for preparing securities documentation depends on the scope of work.
Funds to be raised or Amount to be raised
Base fee
2,000,000 *
/0.5%**/ 0 ₮
Underwriting fee
0 ₮
Total payment amount:
127,000,000 ₮
* Fee for receiving and reviewing applications for the non-exchange market (ББЗЗ).
** Fee for securities registration services.
*** The fee will be calculated as a certain percentage of the amount raised.
**** The fee for preparing securities documentation depends on the scope of work.
** Fee for securities registration services.
*** The fee will be calculated as a certain percentage of the amount raised.
**** The fee for preparing securities documentation depends on the scope of work.
Investment banking department
Contact us for more information.
Phone number: 7555-1919
Phone number: 7555-1919