ACTION PLAN FOR INCREASING PARTICIPATION OF TOP-100 COMPANIES IN THE CAPITAL MARKET APPROVED

Mr. D.Bayarsaikhan (Chairman, Financial Regulatory Commission) and Mr. O.Amartuvshin (President, Mongolian National Chamber of Commerce and Industry) approved the Action plan for increasing the participation of TOP-100 companies in the capital market.

Mr. D.Bayarsaikhan highlighted that as a result of the comprehensive policy and regulatory measures taken by the Financial Regulatory Commission (FRC) within the framework of the Strategy to Reduce Loan Interest Rates, Banking Reform, and Privatization of State-Owned companies, 60 new financial products have been issued in the last 2 years, and as of 17 May 2022, the market capitalization reached MNT8.7 trillion, an increase of 26.8% compared to the same period of 2022. In addition, while 5 companies issued IPOs and raised MNT340 billion, one company issued open-end bonds with a value of MNT20 billion. On the OTC market, 76 companies issued more than 100 new products and raised MNT1.1 trillion. According to the action plan approved today, requirements, conditions, time, and cost to issue IPOs and corporate bonds in the capital market were reduced for the TOP-100 companies. In order to simplify the process of issuing securities, asset valuation is not required for issuing IPOs. In addition, collateral, guarantee, and underwriter contract are not required to issue open-end and close-end bonds. At the end of his speech, he appealed to companies to contribute to the development of the economic and financial sectors of Mongolia, by becoming publicly listed companies by issuing IPOs, raising funds with lower costs, and participating in the capital market actively. The above measures are significant for companies to expand their operations, increase profits and income, raise long-term financing, and improve corporate governance and information transparency.

During today’s ceremony, the Certification of TOP-100 companies was handed over to companies. For the first time, state-owned enterprises were not included, and all TOP-100 companies are private companies. The FRC, the Mongolian National Chamber of Commerce and Industry, Mongolian Tax Authority, the Mongolian Customs General Administration, the Social Insurance General Office, the General Authority for State Registration of Mongolia, and the National Statistics Office of Mongolia ranked the companies, based on the information of companies with 51% or more than 51% of shares owned by private companies.