Еrdenes Tavan Tolgoi JSC (ETT)’s work to launch its IPO on the Hong \Kong Stock Exchange (HKE) is ongoing and additional banks in charge of IPO issuance have been selected, according to the International Finance Corporation (IFC). The IPO of ETT will be listed in London and HKE. The selected banks, namely Merrill Lynch and Swiss Multinational investment bank Credit Suisse have been announced in earlier November. Thus, Nomura, the Japanese financial services group has been chosen along with BOC International, IFC reported. The aforementioned three banks have been chosen out of 25 international banks in which the Government sent invitations. Furthermore, Linklaters, a multinational law firm headquartered in London, has been selected to provide legal assistance. ETT is ramping up work on a planned Hong Kong initial public offering that is expected to raise more than USD 1 billion. Bank of America, Credit Suisse, and Nomura banks will play a key role in the issuance of IPO, said Sumyabazar Dolgorsuren, Minister of Mining and Heavy Industry. Erdenes Tavan Tolgoi JSC is a Mongolian state­-owned company that holds mining licenses to the Tavantolgoi coal deposit which is regarded as one of the largest and high­-quality coking coal deposits in the world, located in the southern Gobi region of Mongolia, approximately 540 km south of Ulaanbaatar. IPOs in Hong Kong have raised USD 20.4 billion this year, down from USD 32.7 billion during the same period in 2018, according to data compiled by Bloomberg. A successful listing of Tavan Tolgoi would show positive results to the Hong Kong bourse after years of seeking to lure big foreign mining companies to list in the city. Tavan Tolgoi coal mine, located in the Gobi desert, is the largest coal ore deposit in Mongolia. Its deposit is estimated at a total of over six billion metric tons of coal, and more than one­third of which is high­grade hard coking coal. According to the port administration of Gashunsuukhit, for the first 11 months of the year, ETT exported 13.39 million tons of coal from Tavan Tolgoi.

Published Date:2019-12-19