Bogd Bank to launch IPO with Ard Securities as underwriterEconomy
Ulaanbaatar /MONTSAME/. Bogd Bank, the youngest bank in Mongolia’s banking industry, has announced that it would launch an initial public offering and list 20 percent of its shares on the Mongolian Stock Exchange to raise funds from public.
In compliance with recent amendments to the Banking Law of Mongolia, approved on January 28, 2021, which obliges some commercial banks to become available for public trading prior to June 30, 2022, and all commercial banks to reduce its ownership concentration before December 31, 2023, the Bogd Bank now becomes the first bank to trade its shares on the stock exchange and transition from private to public.
Established in 2014, the Bogd Bank is owned by Bodi Capital LLC (91,32 percent) and Bogd Capital Investment (8.68 percent). Saruul Ganbaatar, CEO and Board Director at the Bogd Bank, said “The stock market launch of the Bogd Bank is expected to bring about increased transparency and improve the corporate governance of the bank, enabling the bank to fulfill its goal to grow into the best bank in the modern era.”
The total assets held by the Bogd Bank, which has more than 45,000 customers, were increased by around 5 times, from MNT 44.2 billion in 2015 up to MNT 248.8 billion in 2019, and its net operating profit was estimated at MNT 2.9 billion as of 2019.
Ard Securities LLC, a subsidiary of Ard Financial Group - a diversified financial services holding company, will serve as a primary underwriter to lead the Bogd Bank’s IPO process. With 23-year of history in the banking industry by holding broker, dealer, underwriter, investment consultant and forex trade licenses, Ard Securities offers variety of services including securities trading, monitoring of portfolio performance and trading activities, etc.