BDSec JSC’s Shareholders approved to issue additional shares equal to 35.29% of the company’s outstanding shares through its Annual General Meeting on April 18, 2014. As the company’s existing shareholders were given preemptive rights to purchase the newly issued shares before a public issue 32.61% of the total issue or 1,956,625 shares worth of MNT 3,778,242,875 have been subscribed by the existing shareholders.
The majority of BDSec’s shareholders including “Firebird Management” of USA, institutional and individual investors from Japan, Germany and Turkey have all exercised their preemptive rights. It simply proves that foreign investors are still committed and confident of the future potentials of the Mongolian capital markets.
BDSec would like to express its sincere gratitude to all of the shareholders who have participated in the rights offering.
BDSec CEO, Mr. Dayanbilguun.D said: “The fact that our shareholders have once again proved their commitment to BDSec gives an opportunity not only to us but also to the market itself as we will use the raised funds to bring domestic companies to the capital markets which could be a driving force in today’s market conditions.”
About Public Issue
The Company plans to offer the remaining 4,043,375 shares to public at MNT 2,146 per share or above, and finish the offering by the last week of November.
Investors are able to purchase the shares by submitting a sample order form to their broker before November 24, 2014.
BDSec was restructured as a public company in 2006 by issuing 10,000,000 shares offered at MNT 100 per unit. In August 2008, the Company successfully issued 1,000,000 additional shares which were offered at MNT 3,000 a share.
Since the IPO in 2006, BDSec’s share price has rallied from MNT 100 to trade between MNT 2150 and MNT 4600 in the last 3 years. BDSec is one of the Top 20 listed companies on the Mongolian Stock Exchange in terms of the market value as well as the traded volume.
As the company has a high level of corporate governance 5 out of 9 directors of its board are independent directors. BDSec is also audited by BDO, one of the leading auditors in the world. Since becoming a public company, BDSec has consistently distributed dividends to its shareholders, namely in 2006, 2007, 2009, 2010, 2012 and 2013.
Brokerage: 180,000 clients, 8 branches and 25 to 91% of market share.
Investment Banking: Helped domestic companies to raise 71 billion MNT through IPOs, private placements, bonds and convertible loans.
Investment Advisory: Advises 16 companies. Most notably “Erdenes Tavan Tolgoi” LLC, the national strategic coking coal deposit holding company.
Research: Published 22 different types of research materials for investors in English as well as in Mongolian language.
Use of Proceeds
Use of proceeds will be used to further strengthen BDSec’s investment banking activities by helping domestic companies to raise necessary investments.
For more information:
Headquarters: (976) 11-313108, (976) 11-321763