Mongolia Capital Raising and Investment Conference: Foreign Companies Listed on the Korean Exchange
Mr. Kevin Kyungsoo Lee, VP Investment Banking Division of Samsung Securities, explained the reason KRX is looking to list Mongolian companies and the key issues for such listing. There was a large growth in the number of Chinese companies listing on KRX. However, some of these companies are now experiencing accounting irregularity. As such, KRX is interested in diversifying the origins of its listed companies. Valuation is the key issue for Mongolian companies listing on the KRX. Korean has an advanced and mature IT industry, and as such, existing Korean multiples can be low when applied to Mongolian companies. It is important to find the optimal positioning in terms of growth and profitability when listing on the KRX to provide a valuation that is appropriate for both the issuer and the investors.
Mr. John (Junghoon) Lee, Managing Director of the Korean-Mongolian Business Association (KMBA) told the audience that KMBA aims to attract more Korean companies to enter the Mongolian market by providing business intelligence reports on business and legal environment in Mongolia and by hosting networking events for Korean expats in Ulaanbaatar.
Mr. Masa Igata, CEO of Frontier Securities concluded the session commenting that there are many opportunities between Mongolia and Korea because of the approximate 3000 Koreans living in Mongolia, a large population of Mongolian living in Korea, and many local Mongolian possessing Korean language skills.
About Mongolia Expert Series
This year's conference, titled "Mongolia: Capital Raising and Investment" was the fifth edition of its kind to be organized by Frontier Securities. Having grown year on year in terms of importance since 2007, this conference has become a major event for anyone interested in exploring the latest developments in Mongolia's business environment from key direct sources. The focus of this last edition, held in the context of a robustly growing economy and booming mineral exports, encompassed the dynamics of capital raising from the viewpoint of the Mongolian government and local private sector by way of privatization and/or bond issue. It further provided the global investors community (266 Mongolian and foreign entities covering 19 countries were represented) with some relevant and up-to-date insights about the numerous opportunities offered by a wide array of sectors in the country, the most prominent of which being the mining sector.
The conference has gathered more than 500 prominent industry leaders and government officials from organizations such as Foreign Investment and Foreign Trade Agency, State Property Commission, Ministry of Road and Transportation, MonAtom, Erdenes MGL, Mongol Bank, Government of Mongolia, Ministry of Mineral Resources and Energy, Mongolia Development Bank, National Development and Innovation Committee, TDB Mongolia, Prophecy Resource Corp, Mongolian Mining Corporation, South Gobi Energy Resource as well as various professionals from international financial markets, including; Citigroup, J.P. Morgan, CICC, BOC International, Ipreo, Moody's Investors Service, Hogan Lovells, Jones Day, Minter Ellison, Quam Asset Management, American Appraisal, BMI Technical Consulting (Resources) Ltd, etc. In addition, senior managers from MSE Mongolian Stock Exchange, Hong Kong Stock Exchange, Korea Exchange, London Stock Exchange, and Tokyo Stock Exchange have featured in our conference and shared their knowledge and insights regarding IPO and capital raising with broad audience of our conference.
Mongolia Expert Series is one of the in-house research report of Frontier Securities which utilizes the information collected during the Frontier Securities' Annual Conference. We hope the series will provide genuine insight into Mongolian investment environment, as well as various capital raising opportunities present for Mongolian companies.
About Frontier Securities
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.