The Mongolian coking coal company Mongolian Mining Corp has been approved by the listing committee of the Hong Kong stock exchange. It was formerly known as Energy Resources and runs the Ukhaa Khugdag mine located 245 km from the Chinese border.
It is the company listed in Hong Kong which is fully based and operated in Mongolia. As per Lei Wang who helps to oversee more than $56 Billion at Thornburg Investment Management in Santa Fe, New Mexico, Hong Kong has ambitions to become a world financial centre with diverse listings and this is a step towards that goal.
The Initial Public Offering will enable it to raise $1 billion as it plans to list 25% of its freely traded shares after the initial sale. The information is not officially public yet and the company plans to start its pre marketing next week. The funds raised from the IPO will be utilized for infrastructure development and acquisitions said the sources who wished not to be identified.
The landlocked Mongolia is seeking investors to help meet its development strategy to grow its economy by 14% by 2015. This would help double its domestic product per capita from its current $1,900 to $5,000 for its 2.7 million strong population.