Frontier Securities is the first local Mongolian Securities firm with a global network and international expertise. Established by Masa Igata, Frontier has been given full-service securities related license by the Financial Regulatory Committee (FRC) of Mongolia. Frontier also has brokerage, dealing and underwriting licenses that are regulated by FRC. Since its establishment, Frontier's primary area of focus has been the cross-border investment banking business.
Invest Mongolia is Ulaan Baatar's premier capital raising conference, with over fifty experts speaking on the latest developments on the Mongolian investment scene.
At the "Mongolia: Capital Raising & Investment" conference, a panel discussion was held with Mr. Jung-Suk Jo of the Korean Exchange (KRX) acting as facilitator and with delegates from Samsung Securities and the Korean- Mongolian Business Association (KMBA) in order to enlighten the audience on the listing of foreign companies on the KRX and the services offered by the KMBA.
Mr. Eddie Grieve from the Australian Securities Exchange (ASX:ASX) presented at the "Mongolia: Capital Raising and Investment" Conference organized by Frontier Securities. He talks about ASX as a ideal destination for Mongolian companies seeking listing.
Mr. Hiroki Kurihara, Executive Director of Tokyo AIM, educated attendees about capital raising opportunities for international companies through the Tokyo AIM. The Tokyo AIM was launched in 2009 and is a Joint Venture between the Tokyo Stock Exchange (51%) and the London Stock Exchange (49%). Tokyo AIM was launched to meet the unmet demands of investors and issuers, more specifically, it was launched to address the high degree of regulations that are currently required in the traditional stock exchanges.
Hong Kong Stock Exchange is to offer a comprehensive range of advantages to Mongolian companies eager to raise capital within the Asia region. Eric Landheer, Senior Vice President and Head of Issuer Marketing, Hong Kong Exchange and Clearing Limited (HKG:0388), told the audience about the advantages of listing Mongolian companies in Hong Kong and further introduced the new rules for the listing of mineral and exploration companies.
Depositary Receipts (DRs) are mainstream instruments for listing on overseas stock exchanges and they represents an ownership in a foreign (non-US) company. Depositary Receipts are issued against the deposit of the issuer's domestic ordinary shares in the custody account of the depositary bank in the issuer's home market. Each depositary receipt is backed up by a specific number of an issuer's local shares (or a fraction), this number is called a DR Ratio. The ratio is designed to set the price of each DR in a price range competitive with the issuer's international peer group.
From 1970s to early 1990s, most of the exploration covering up to 40% of the whole Mongolian territory was carried out by Russian geologists. During the last 20 years, the exploration was mainly financed by foreign investment from countries such as France, U.S.A and Canada with wide interest and expertise in nuclear energy. Companies with interest in uranium such as Areva and Mitsubishi Corporation, CNCC International Ltd and Denison Mines Corp. were mentioned as particularly active in the Mongolian territory. Mongolia has also entered in to various cooperation agreements and/or partnerships with a numerous number of foreign governments such as China, India, France, Japan, USA and Russia.
The Silk Road Index is set to become a global benchmark that tracks the share performance of the 30 largest publicly listed companies with assets and operations in Mongolia.
Mr. Randolph Koppa, President of the Trade and Development Bank (TDB) pointed out the huge investment needs in Mongolia in the coming years. While USD 9 billion to 11 billion is needed for mining development there are many other industries that will also demand access to large amounts of investment. For example: Infrastructure (USD 8-10 billion), Industry (USD 5-7 billion), Industrial Trade Parks (USD 10-12 billion) and Agriculture (USD 1-2 billion). In aggregate, USD 41 to 54 billion investment will be required.
At the Mongolia Capital Raising Conference, Mr. Shagdarsuren, Secretary General of Mongolian Bankers Association, acted as moderator of the panel about the role of the newly established Development Bank of Mongolia (DBM).
