A bill has been enacted by the Mongolian Parliament on January 29, 2021, amending the Banking Law of Mongolia. According to the bill, the so-called “systemic” commercial banks in Mongolia will need to become publicly-traded companies and, thus, conduct an IPO by June 30, 2022. Also, by December 31, 2023, any shareholder must not hold more than 20% of the total issued shares of any bank (please refer to our client advisory on the banking law amendments at www.khanlex.mn/publications/proposed-amendments-to-the-banking-act-of-mongolia-may-lead-to-landmark-reforms/).
Our Capital Markets team have prepared a brief legal overview of an IPO process in Mongolia, which also includes discussion of legal considerations for the string of upcoming banks’ IPOs.
Please contact us if you wish to receive the overview and discussion paper:
· G.Batjargal (mobile: +976-91911070, email: firstname.lastname@example.org);
· I.Uchralbayar (mobile: +976-89099106, email: email@example.com);
· O.Namuun (mobile: +976-99997088, email: firstname.lastname@example.org).