LSE welcomes Mongolian companies
Mongolia Day took place in London Stock Exchange on June 28. Our reporter Budvaa Byambasuren sends this report.
A sunny morning welcomed us in London on Monday. We took a subway to the stock exchange building in eastern London which took about 15 minutes in a train full of people going to work. The front door of the Stock Exchange was closed. Assuming that Englishmen would not make such a mistake, we walked around the building and found another entrance, learning that the closed gate was only for official visitors. We took a guest ID card from the receptionist which allowed us access to the stock exchange chamber and elsewhere.
The event began at 8.45 am. MP O.Chuluunbat, director of Mongolian Stock Exchange R.Sodkhuu, director of Government Property Bureau D.Sugar, director of Norton Sec Company B.Ulziibayar and Mongolbank representative in London D.Enkhjargal were among those present. A welcome speech was given by John Edwards, senior manager of the Stock Exchange and D.Enkhjargal responded. LSE executive director Havir Rolet then spoke and expressed his readiness to help Mongolian companies develop. Many investors and legal consulting companies were present.
Presentations containing suggestions on trading in international markets were given by Lawrent Sharbonier of Credit Suisse and Peter Nichols of Rio Tinto. Both referred to Mongolia’s huge potential and stressed that investors would be closely watching the policy of the Mongolian Government.
Then came the turn for the Mongolian presentation. O.Chuluunbat, vice director of Oil Department D.Erdenebileg and director of Foreign Investment Department B.Ganzorig gave detailed information on the mining sector, the legal environment and government policies. D.Sugar, director of Government Property Bureau, talked about the 15 strategic deposits, and was very attentively heard.
B.Erdenebileg said, “I am happy that Europe is no longer afraid of Mongolians and has opened its doors for us.” He gave detailed information about Mongolian natural resources. Exploration licenses cover 23.3 percent of the total area of the country, while mining licenses cover another 0.24 percent. The number of total licenses is 1,081. Last year, USD500 million was invested in the sector. There was scope for many more large foreign investments.
I asked Chuluunbat why Mongolia was trying to enter a European market when foreign investors were flocking to Asian markets? He explained that LSE is one of the biggest trading centers but “investors here don’t have enough knowledge” about Mongolia. “There may also be some who would ask where Mongolia is. It is different in Hong Kong because there Mongolia is known. Shares are valued better there. But London Stock Exchange has more experience in mining IPOs. Hong Kong is better for manufacturing units’ IPOs. Both are beneficial for us. It is not the LSE’s fault that Mongolia is not too well known here. Mongolian companies must introduce and advertise themselves internationally,” he said.
The first Mongolian company to trade in LSE is Petromatad Limited which owns IV, V and XX oil blocks. It drills in XX and the other two are undergoing preliminary exploration. The company told us what it did to get listed. It formed a marketing team of professionals who managed everything. Their executive board has people with international reputation and they receive advice from consulting companies. The LSE’s admission criteria are tough but fair, and it has special provisions for emerging companies in the secondary market. There are 613 companies from 70 countries registered in LSE.
A sunny morning welcomed us in London on Monday. We took a subway to the stock exchange building in eastern London which took about 15 minutes in a train full of people going to work. The front door of the Stock Exchange was closed. Assuming that Englishmen would not make such a mistake, we walked around the building and found another entrance, learning that the closed gate was only for official visitors. We took a guest ID card from the receptionist which allowed us access to the stock exchange chamber and elsewhere.
The event began at 8.45 am. MP O.Chuluunbat, director of Mongolian Stock Exchange R.Sodkhuu, director of Government Property Bureau D.Sugar, director of Norton Sec Company B.Ulziibayar and Mongolbank representative in London D.Enkhjargal were among those present. A welcome speech was given by John Edwards, senior manager of the Stock Exchange and D.Enkhjargal responded. LSE executive director Havir Rolet then spoke and expressed his readiness to help Mongolian companies develop. Many investors and legal consulting companies were present.
Presentations containing suggestions on trading in international markets were given by Lawrent Sharbonier of Credit Suisse and Peter Nichols of Rio Tinto. Both referred to Mongolia’s huge potential and stressed that investors would be closely watching the policy of the Mongolian Government.
Then came the turn for the Mongolian presentation. O.Chuluunbat, vice director of Oil Department D.Erdenebileg and director of Foreign Investment Department B.Ganzorig gave detailed information on the mining sector, the legal environment and government policies. D.Sugar, director of Government Property Bureau, talked about the 15 strategic deposits, and was very attentively heard.
B.Erdenebileg said, “I am happy that Europe is no longer afraid of Mongolians and has opened its doors for us.” He gave detailed information about Mongolian natural resources. Exploration licenses cover 23.3 percent of the total area of the country, while mining licenses cover another 0.24 percent. The number of total licenses is 1,081. Last year, USD500 million was invested in the sector. There was scope for many more large foreign investments.
I asked Chuluunbat why Mongolia was trying to enter a European market when foreign investors were flocking to Asian markets? He explained that LSE is one of the biggest trading centers but “investors here don’t have enough knowledge” about Mongolia. “There may also be some who would ask where Mongolia is. It is different in Hong Kong because there Mongolia is known. Shares are valued better there. But London Stock Exchange has more experience in mining IPOs. Hong Kong is better for manufacturing units’ IPOs. Both are beneficial for us. It is not the LSE’s fault that Mongolia is not too well known here. Mongolian companies must introduce and advertise themselves internationally,” he said.
The first Mongolian company to trade in LSE is Petromatad Limited which owns IV, V and XX oil blocks. It drills in XX and the other two are undergoing preliminary exploration. The company told us what it did to get listed. It formed a marketing team of professionals who managed everything. Their executive board has people with international reputation and they receive advice from consulting companies. The LSE’s admission criteria are tough but fair, and it has special provisions for emerging companies in the secondary market. There are 613 companies from 70 countries registered in LSE.
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