With approval from the Financial Regulatory Commission, Baganuur JSC released shares on the primary stock market on Monday and sold over 9.8 million shares (32 percent of the company’s shares) for 2,650 MNT per share through the Mongolian Stock Exchange (MSE).
Director of the Board of Baganuur B.Ariunbold said, “For 37 years, Baganuur has been supplying around 70 percent of Ulaanbaatar’s coal consumption. The government has owned 75 percent of Baganuur, while the remaining 25 percent was owned by shareholders. By releasing additional shares, the government ownership of 75 percent has been lowered to 51 percent, and the private sector and citizens are now able to own its remaining 49 percent. Baganuur has around 5,000 small shareholders, and now they are eligible to purchase the same amount of the company’s shares that they currently hold.”
Baganuur JSC expects to earn 26 billion MNT through the two-day trade. The company reported that the funding from shares will be used for renovating Baganuur’s industrial park. In 1997, the company upgraded its park through Japanese investment.
Since its establishment in 1978, Baganuur has explored 103 million tons of coal. Baganuur reported that since 2013, the company’s sales have grown and the company saw 1.9 billion MNT in profits in 2015.