Beren Mining, a subsidiary company of Beren Group, has announced that it will issue an initial public offering for 30% of its shares within the first quarter of next year. Having obtained the required permits for the IPO from Mongolia’s Financial Regulatory Committee last summer, Beren Mining has appointed Bdsec, the largest brokerage firm in the country, as the underwriter for this new project.
Mongolian Stock Exchange announced this week that they have also made a decision to register the shares offered by “Beren Mining” to the public. If successful, it is hoped that Beren Mining will generate MNT 130 Billion from the offer, and it would be the largest ever IPO executed by the Mongolian Stock Exchange.
Beren plans to offer 522,243,996 shares to the public, and each share will be issued at MNT 250. The capital raised from the IPO will be used to establish an iron ore processing factory. Also, new infrastructure, office buildings and workers housing will be funded by the investment.
The new project will be based on the iron ore mine in Tuvshruuleh soum of the Arhangai province. Beren’s factory has the production capacity of 250,000 metric tons of iron ore concentrate with 63-67% content.