Eurasia Capital in Press
South China Morning Post
Aug 09, 2010
Watch out, Hong Kong. Another Asian stock exchange has big plans to start snapping at your heels.
It is not Singapore, Thailand or even Malaysia -but Mongolia.
The undeveloped country's stock exchange may be the world's smallest national share trading platform, with a total market capitalisation of only US693m dollars.
It is housed in a bright-pink former children's cinema in Ulan Bator and open for trading between 11am and noon. Unsurprisingly, hardly any global money managers, except a few specialist hedge funds, want to use it.
But this pint-sized bourse is determined to move into the modern age.
Hong Kong listings of Mongolian-focused companies could raise up to US$3 billion within the next three years, according to Eurasia Capital.
Mongolian-focused companies are targeting Hong Kong’s IPO market for up to US$3 billion over the next three years, according to investment banking boutique Eurasia Capital. SouthGobi Energy Resources, which owns Mongolian resources, created history in January this year when it became the first foreign company to list shares on the Hong Kong stock exchange. Rivals are now queuing up to follow suit.
Why do Asian investors find Mongolian story attractive?
Growing demand for natural resources in Asia, primarily in fast growing China, and geographical proximity of resource-rich Mongolia to the world’s largest consumer of many industrial commodities is particularly an attractive destination for Asian investors, including from China (Hong Kong), Japan and South Korea. Mongolia is a home for world-class mineral resources. It holds the second-largest copper and the third-largest coal reserves in the world. It also has significant uranium and rare earth metal resources, as well as significant deposits of gold and zinc. Official estimates suggest that there are 6,000 known deposits of ore minerals and 15 of them are strategic deposits. It is estimated that 10 largest strategic deposits of Mongolia worth a staggering US$1.3trn against the currently modest GDP of US$4.2bn.
By John Duce
June 12 (Bloomberg) -- Mongolia plans to sell 30 percent of a company controlling the Tavan Tolgoi coking coal deposit in share sales to help fund $1.5 billion of initial development cost, the mining minister said.
The share offerings may take place overseas or in Mongolia and a government-owned company will retain a 40 percent stake, Minister for Minerals and Energy Dashdorj Zorigt said in a telephone interview, after a parliamentary vote yesterday. The rest will be offered to local businesses and the public, he said, without giving details.
By John Duce
June 7 (Bloomberg) -- Mongolia wants a state-controlled company to own a “significant percentage” of Tavan Tolgoi, an untapped coking coal deposit that has attracted the interest of the world’s biggest mining companies.
A bill has been submitted to parliament suggesting part of the deposit is to be controlled by a state-run enterprise while a second tranche is to be operated by a group of foreign and domestic companies, Minister for Minerals and Energy Dashdorj
Zorigt said in a telephone interview today.
By Yuriy Humber and Hanny Wan
June 1 (Bloomberg) -- Billionaire Oleg Deripaska, who listed his United Co. Rusal in Hong Kong this year, says the city is Russia’s best chance to tap into Asian economic growth.
Investors, who have watched debt-laden Rusal slump, are yet to be persuaded.
“Hong Kong is the gateway to Asia,” Deripaska said in an interview at Hong Kong’s Conrad Hotel. “I focus more and more on Asia because I believe we can do better business in Asia than in struggling economies” such as the U.K.
* Investors keep wary eye on government caution
* Opportunities still abound despite high-profile setbacks
* Ulan Bator unable to stem China's growing role
By David Stanway
ULAN BATOR, March 17 (Reuters) - Mongolia is treading cautiously as it taps its huge mineral wealth, aiming to ward off fears of resource overdependence and the dominance of powerful foreign miners, but its moves don't scare off investors.
Official forecasts from the landlocked nation, sandwiched between China and Russia, suggest coal production will double, gold output treble and copper quadruple in the next five years, but a wary Mongolia appeared to hit the brakes last month.
By John Duce
April 1 (Bloomberg) -- SouthGobi Energy Resources Ltd., the Canada-listed mining company backed by China’s sovereign wealth fund, is considering selling shares in Mongolia.
“It’s not going to be a major fund-raising measure but would be a way for local people to invest in the company,” David Bartel, vice president of SouthGobi’s mining operations in Mongolia, told an investment forum in Hong Kong today, without giving a time-table. “Our resources are in Mongolia.”
By Yusuke Miyazawa and David Yong
March 2 (Bloomberg) -- Japan Bank for International Cooperation, the state-run lender that backed a 100 billion yen ($1.1 billion) Samurai bond issue by the Philippines last month, approached Vietnam and Mongolia to discuss similar sales.
By John Duce and Michael Forsythe
Feb. 9 (Bloomberg) -- Mongolia, the Asian nation with some of the world’s largest untapped mineral resources, may transfer gold, copper and coal reserves into companies that would then sell shares to global investors, the prime minister said.