The approval of the revised ‘Securities Markets Law’ (2013), FRC ‘Dual-listing regulation’ (2017), ‘MSE Listing Rules’ (2017) created the legal framework for introducing dual-listing in Mongolian capital markets. Accordingly, the first company to be dual-listed on the Mongolian market, a Toronto-listed company, has submitted its dual-listing application to the MSE and FRC on the 12th March, 2018. MSE has reviewed the application and approved the listing of up to 4,000,000 shares worth CAD 1.2 million on Board III of MSE on the 4th April 2018 within the timeframe stated in the law. However, the company will be able to introduce its securities and do the offering upon the approval by the FRC.
The introduction of the securities dual-listing is considered as a historic development milestone for the Mongolian capital markets, for it enables the listing of shares of foreign listed mining companies with operations in Mongolia, providing Mongolian citizens the opportunity to share the benefits of their natural resources. In addition, it will also step up the Mongolian capital markets development in line with international standards, increase its role in the promotion of economy and create a favorable environment for capital raising in the future. Therefore, MSE, as a market infrastructure organization, has sent an official request to FRC to pay special attention to the first dual-listing application review.
MONGOLIAN STOCK EXCHANGE