💸 TOP Securities Firms | September Effect | Another IPO

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Hey fellas! Want to know more about the Mongolian stock market? We've got you covered. Stay tuned. 🔥

Today’s newsletter covers:

• TOP securities firms

• September Effect on TOP 20 index

• Another IPO

Let’s dive in!

💸 TOP securities firms

The 51 securities firms registered in MSE (MSE) made a profit of ₮5 billion so far in the first half of the year.

Red 🔴 → Green 🟢

The total operating income of these securities firms increased by 64.7% compared to the previous year and reached a total of ₮20.4 billion. As a result, the securities firms, which were operating at a loss of ₮2.9 billion at the same time last year, saw a profit of ₮5 billion.

• Mixed: However, only 16 were profitable. while 21 were at a loss, and the rest haven’t reported yet.

• Top ten: The operating income of the top 10 most profitable securities firms increased by 78.4% from a year ago. As a result, their total profit reached ₮6 billion.

• 52.6%: Golomt Capital’s profit made more than half of the top 10 securities firms' profit pie.

The secret behind the surge

Understandably, the trading volume of all 51 securities companies increased 1.9 times in the first half of the year. Of course, the more you trade, the more you earn. But when it comes to trading, each firm has its tricks.

• Bond lovers: Securities companies such as Golomt Capital and Ulzii & Co Capital dominated the primary bond market while Mandal Capital Markets has done well in the secondary bond market.

• Stonk lovers: BDSec dominated the primary stock market mainly due to the fact that they were the main underwriter of KHAN Bank (KHAN)’s IPO. On the other hand, Investor Capital and Ard Securities are more into the secondary market trading of stocks.

DATA STORY: Will the September Effect affect the TOP 20 index?

The TOP 20 index has increased by an average of 1.3% in September over the past 11 years. Over that period it has only fallen 5 times and increased 6 times.

🚞 Monlogistics Holding IPO

Monlogistics Holding has made history in Mongolia's transportation and logistics industry by launching its IPO. So, what should you know about this IPO?

First, Monlogistics Holding is more than just a transportation company. It's a conglomerate with 9 subsidiaries offering a wide range of transportation services, including export, transit, e-commerce, and even operations in foreign countries. As of 2022, the company has achieved a substantial total revenue of 140 billion ₮, accounting for 7% of the industry's revenue.

When it comes to the financials, Monlogistics Holding has shown impressive growth. Its profit in the previous year surged by 5.7 times compared to 2017, reaching ₮9.7 billion. The company aims to triple its sales revenue to ₮428.6 billion and increase its profit by 3.4 times to ₮33.5 billion by 2027.

Regarding the IPO, Monlogistics plans to value its business at ₮73 billion and offers 15% available to the public. A share is offered at ₮185, and they aim to raise ₮11 billion in total. Additionally, 70% of the overall shares will go to strategic investors, with the remaining 30% being offered to the general public.

• 73/27: Most of the raised funds, 73%, will be invested in purchasing rolling stock, specifically 100 flat wagons, while the rest will serve as working capital.

• More: Mandal Capital Markets LLC is the main underwriter of the IPO. Furthermore, when it comes to distributing the primary market, all orders of 500 units or less will be met in full, and any surplus will be distributed fairly based on proportions.

In conclusion, participating in Monlogistics' IPO comes with perks like owning shares in 9 companies and receiving regular dividends. However, it's essential to consider the challenges in the Mongolian logistics industry before making a decision. You can still participate in the initial market trading for their IPO, which will run until this Friday.

🏃 QUICK STORIES

🔵 The OTC market celebrated its 2-year anniversary. Debt instruments, almost entirely bonds, worth ₮2.1 trillion were registered at the OTC market and raised ₮2.1 trillion as of June 2023 since launch. Also, the average interest rate is 17.48%.

🔵 Mongolia welcomed 448,156 tourists so far this year. It became unlikely to reach its ambitious goal of 1 million tourists but it’s still a promising number. Surprisingly, over 100,000 South Koreans visited Mongolia.

🔵 The Fourth Mongolia-China Expo was held on September 6-10 in Hohhot, the capital city of Inner Mongolia. Over 3000 companies from 35 countries and regions, in particular, over 500 companies from Mongolia participated in the Expo.

🔵 Foreign currency reserves reached $3.93 billion, a 41% spike within a year. Also, the total trade turnover has reached $15.9 billion while the trade surplus jumped to $4 billion.

⭐ TOP NEWS

• History: History of Mongolian currency. (MongolBank)

• Article: Pope praises Mongolia as China shuns history. (euronews)

• Need to know: Pax Monglica: The Mongolian Peace. (silk-road)

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Editor: E.Zolbayar
Writer: M.Khulan & Skh.Angirmaa

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.