CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
Mongolia sees LSE front-runner for stock exchange
* Mongolia to choose stock exchange operator in October
* Tavan Tolgoi mine operating license given in October
* Studying establishment of budget stabilization fund
* 2010 GDP to be in 7 to 8 percent growth range (Adds details, comment, background, byline)
By Daniel Bases
NEW YORK, Sept 20 (Reuters) - Mongolian Prime Minister Sukhbaatariin Batbold said on Monday the London Stock Exchange is the front-runner in a bid to manage a new local stock exchange, expected to be up and running by year-end.
"London is the front-runner" to run this exchange, building it up from scratch," Batbold told reporters on the sidelines of the United Nations General Assembly meeting.
Mongolia is trying to make the most of its natural resource wealth. It is one of the last places on earth with huge untapped mining resources for coal, copper, gold and uranium.
The government's international tender offer for a management contract for a new stock exchange drew 12 bidders, with the field now narrowed to four.
Batbold said the four are the London Stock Exchange, NASDAQ OMX, Deutsche Borse, and the Korean Stock Exchange.
The idea is to have established companies with listings elsewhere add a dual listing on the Mongolian exchange.
"First, what we would ask from them is to have a dual listing on the Mongolian stock exchange from those already listed companies," he said.
"Secondly, there will be (large) state-owned enterprises through the privatization program. So we will have a quite serious change in our privatization concept so that state-owned enterprises, especially the large ones, will go through IPO on the Mongolian stock exchange and possibly in combination with international stock exchanges," Batbold said.
Even as the global financial crisis has wrought havoc on developed economies and put a crimp in generally robust emerging markets, economic growth will remain strong, Batbold said, albeit down from the almost 10 percent per year average growth of the last decade.
"Despite the financial crisis and difficulties we face in different industries, especially the livestock and others because of the harsh winters, still we have 7-8 percent growth of GDP this year. That is quite promising, I think for Mongolia," he said.
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Mongolia Plans to Seek Tavan Tolgoi IPO, Keep Control
Sept. 20 (Bloomberg) -- Mongolia will seek an initial public offering for its Tavan Tolgoi mining assets after this year’s opening of a national stock exchange, with the government retaining control, Prime Minister Sukhbaatar Batbold said.
The country will sell as much as a 50 percent stake in the coal deposit to the public, Batbold said in a briefing in New York today. Mongolia will pick a contractor for the project in the next month, he said.
China, the world’s biggest steelmaking nation, last year increased imports of coking coal fivefold to a record as the government closed unsafe mines. Mongolian Mining Corp. and Winsway Coking Coal Holdings Ltd., both of which operate in Mongolia, are seeking to raise as much as HK$9.74 billion ($1.3 billion) in Hong Kong initial public offerings to fund expansion, according to term sheets sent to investors.
London Stock Exchange Group Plc is the “frontrunner” to be the partner of Mongolia’s exchange and hold “management rights,” Batbold said today. The country aims to open the exchange this year, he said.
Batbold said he hopes publicly traded companies with “strategic” assets in Mongolia, like Rio Tinto Plc., will seek listings, and the country may seek to require them to do so.
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"Mogi" Munkhdul Badral
Executive Director
CPS International
Email: mogi@cpsinternational.mn
Mobile: +976-99996779
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
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