Secondary Market Trading of National Privatization Fund launchedEconomy
Ulaanbaatar /MONTSAME/. The secondary market trading of units of National Privatization Fund (NPF), Mongolia’s first closed-end investment fund, started on October 23, 2020 upon the completion of the registry and exchange of relevant information by the ‘Mongolian Central Securities Depository’ LLC and the right to redeem extra payment is now effective through securities companies.
The launch of the secondary market trading was approved by the Financial Regulatory Commission in accordance with the resolution No.1/4328 of the Chairman of the FRC, dated October 22, 2020. The FRC also approved the first subscription offering of the National Privatization Fund as successful.
NPF is the Nation’s first dedicated institutional investor and will be active on domestic and international markets on behalf of its investors. The New Fund of the NPF was oversubscribed by MNT 1 billion and raised MNT 5 billion on its closing date on October 16 from over 2.5 thousand private and institutional investors. NPF has issued 50 million units valued at MNT 100 per unit, and 95 percent of the Fund or 47.5 million units were offered to the public.
According to Article 19.7 of the Investment Funds Law, the National Privatization Fund will start its asset management activities after taking a license from the FRC.