Listing on Australian Securities Exchange for Mongolian Companies
ASX - A consistent performer over time with world class liquidity
Having consistently performed over time at world class level, ASX is a fully globally recognised Stock Exchange. In 2010, ASX listed 126 new equities, raised A$25.05B in total, and was ranked #5 for capital raising by World Federation of Exchanges. In June 2011, with $5.92B market capitalization, ASX is the world's 8th largest listed stock exchange by capitalisation.
ASX - A natural destination for international mining capital
As one of the world's largest resource rich and mining countries, Australian market has a sound understanding of mining investment. Australia is a leader in developing practical and effective reporting standards for mining (JORC). There is mining expertise across a range of professions and investment groups - legal, accounting, analysts, institutions.
Since mid 19th century ASX has helped mining companies to raise capital. It has built world class trading, clearing and settlement technology. The disclosure rules are tailored to the mining industry, and securities law provides for efficient yet cost effective capital raising mechanisms with high standards of market integrity. There are around 500 ASX mining companies operating around the world currently. ASX's resource companies represent 45.1% of all listed companies and 36.9% of total market capitalisation.
ASX - A better connection to Mongolia
ASX is also connected even closer to Mongolia. More than 30 ASX listed companies currently have projects and operations in Mongolia. They notably include:
- Rio Tinto (ASX:RIO) (through Ivanhoe Mines)
- Aspire Mining Limited (ASX:AKM)
- Xanadu Mines Ltd (ASX:XAM)
- Mongolian Resource Corporation Ltd (ASX:MUB)
- Hunnu Coal Limited (ASX:HUN)
- Haranga Resources Limited (ASX:HAR)
Since Hunnu Coal Limited was listed on 12th Feb 2010, its market capitalisation increased from A$21.8m to A$320.8m. Aspire Mining Limited has also raised total capital of $27.9m since its listing.
As a globally recognised Stock Exchange trading in the Asian time zone, with proven consistent performance over time with world class liquidity, ASX is definitely an excellent venue for capital raising. It is a natural destination for international mining capital and it further offers a clear and effective securities regulatory regime.
ABOUT MR. EDDIE GRIEVE
Mr. Eddie Grieve is Manager, Listings Business Development at the Australian Securities Exchange (ASX). He has had extensive experience in all aspects of capital markets over a period of more than 26 years.
Mr. Grieve has served in a number of senior roles at ASX including Head of Listing. He has been closely involved in major floats and primary equity market raisings throughout his career and in his current role at ASX he is responsible for growing the ASX listing business and developing and promoting access to the ASX equity capital market.
Mr. Grieve frequently presents on IPO and listing issues and works closely with companies considering listing on ASX to help them achieve their objectives.
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.
Rio Tinto Limited
Mongolian Resource Corporation Ltd
Hunnu Coal Limited
Haranga Resources Limited
Australian Stock Exchange Limited
Aspire Mining Limited