The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Deutsche, Goldman win plum Mongolia IPO roles

Share giveaway might prompt baby boom; Crucial strategic investor role to be decided soon

Deutsche Bank and Goldman Sachs have been chosen as joint sponsors and lead managers for the IPO of Erdenes Tavan Tolgoi, the Mongolian coking coal asset whose flotation is expected to transform the country’s economy at a stroke. As Euromoney reported last month, the two banks were chosen alongside BNP Paribas and Macquarie to work on the deal after fierce pitching that involved almost all of the world’s leading investment banks. The latter two banks will act as selling agents, a more junior role. Erdenes TT chief executive B Enebish has told local media that the banks had already begun working on the deal, according to Dale Choi, an analyst at Frontier Securities in Ulaan Baatar.

Initial speculation suggested the deal might raise about $2 billion but sources are now saying that the total could be closer to $5 billion. Although the deal could transform the lives of Mongolia’s people, rocketing the country up the GDP per capita rankings, some sources in Ulaan Baatar worry that well-intentioned plans to distribute some of the proceeds from the deal could run into trouble. Mongolia’s government plans to sell about 10% of the deal at a reduced rate to local professional investors, as well as give away 10% to Mongolian citizens.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree