BDSec
Encyclopedia
BDSec Joint Stock Company
is a full-service stock brokerage and investment banking
firm in Mongolia
. Established in 1991 as a part of Mongolian Stock Exchange
(MSE) in Tuv
province, it now plays a central role in the domestic securities market
. Its name originates from the company’s original name, Bayan Dukhum Securities. Headquartered in Ulaanbaatar
and with branch offices in Erdenet
, Sainshand, and Tuv provinces, BDSec operates through four business divisions: brokerage, underwriting
, investment advisory
and research
.
. In 2000, BDSec became the largest dealer of the Government bond. Upon receiving the official license for underwriting from the Financial Regulatory Commission (FRC) in 2004, it became the first independent underwriter and chief dealer for corporate bonds, and successfully introduced Pumo Bond to the fixed income market. In 2005, BDSec made an agreement with “Moninjbar”, the civil engineering and plumbing company, to act as official underwriter for its “Reformation Bond”. BDSec went public in 2006 and currently it is the 7th largest MSE-listed company in terms of market capitalization
. In the same year, they underwrote Genco Tour Bureau as our first IPO in the public equity market. They also completed the secondary issue of “Puma Bond” in 2006. In 2007, BDSec entered into an agreement with New-York based brokerage firm, Auerbach Grayson
& Co, Inc. which became its official representative in the United States of America. In the same year, they also completed IPOs of HBOIL JSC, Moninjbar JSC and Tuul Songino Water Resource JSC through its underwriting arm.In 2008, BDSec successfully managed MNT 3.2 billion IPO of Khukh Gan JSC, MNT 0.3bn IPO of Naco Fuel JSC, MNT 0.6bn secondary offering of HBOIL JSC and MNT 2.8bn secondary offering for BDSec JSC. They started public education program in 2008 with giving a free lectures and trainings about the capital market to the domestic people. In 2009, BDSec initiated and started "Green IPO" movement that aims to support environment friendly companies to raise capital on the MSE and with necessary working capital. In 2010, total transaction amount executed by BDSec has exceeded over 100 billion MNT and they won the tender to service account holders in Orkhon province (Erdenet city) announced by the FRC. The National Chamber named BDSec the “best entrepreneur of the year 2010”. Considered as one of the fastest growing frontier markets
, Mongolian stock market was one of the best performing markets in 2010. BDSec has kept its leading position and set a new record on amount of single transaction
of US$17 million.
In 2011, BDSec introduced few new issuance to the Mongolian securities market, namely Silikat IPO, Just Agro bond
and Sharyn Gol rights issue
, all of them being the first ones in 3 years.
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
is a full-service stock brokerage and investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
firm in Mongolia
Mongolia
Mongolia is a landlocked country in East and Central Asia. It is bordered by Russia to the north and China to the south, east and west. Although Mongolia does not share a border with Kazakhstan, its western-most point is only from Kazakhstan's eastern tip. Ulan Bator, the capital and largest...
. Established in 1991 as a part of Mongolian Stock Exchange
Mongolian Stock Exchange
The Mongolian Stock Exchange , located in Ulan Bator, is Mongolia's sole stock exchange. It was established in January 1991 by the decree of the Mongolian Government to privatize state-owned assets, it was the world’s best-performing stock market after a run-up of 121 per cent in 12 months...
(MSE) in Tuv
Tuv
Tuv may refer to the following geographical locations:*Töv Province in Mongolia*Tuv in Hemsedal municipality, Buskerud, Norway*Tuv in Bodø municipality, Nordland, NorwayTUV may also refer to the following:*Tuvalu, a Pacific Island nation...
province, it now plays a central role in the domestic securities market
Securities market
Securities market is an economic institute within which take place sale and purchase transactions of securities between subjects of economy on the base of demand and supply....
. Its name originates from the company’s original name, Bayan Dukhum Securities. Headquartered in Ulaanbaatar
Ulaanbaatar
Ulan Bator or Ulaanbaatar is the capital and largest city of Mongolia. An independent municipality, the city is not part of any province, and its population as of 2008 is over one million....
and with branch offices in Erdenet
Erdenet
Erdenet is the third-largest city in Mongolia and the capital of the aimag of Orkhon.Located in the northern part of the country, it lies in a valley between the Selenge and Orkhon rivers about 150 miles northwest of Ulan Bator, the capital...
, Sainshand, and Tuv provinces, BDSec operates through four business divisions: brokerage, underwriting
Underwriting
Underwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products . The name derives from the Lloyd's of London insurance market...
, investment advisory
Investment advisory
An Investment advisory, in financial/investment organizations, is the unit linking the investment professionals in the central asset management unit to the relationship managers and/or to important clients of the asset management organization.Investment Advisors explain the investment ideas of the...
and research
Research
Research can be defined as the scientific search for knowledge, or as any systematic investigation, to establish novel facts, solve new or existing problems, prove new ideas, or develop new theories, usually using a scientific method...
.
History
BDSec was founded in 1991 as a brokerage and dealing firm “Bayandukhum” in order to receive and register common shares of Property Privatization from citizens of Tuv Province. The company was re-organized, in 1995, to provide comprehensive brokerage and dealing service on the stock market, under the name of BDSec LLC. In 1998, the current management team acquired BDSec and moved its headquarter from Tuv province to the capital city of UlaanbaatarUlaanbaatar
Ulan Bator or Ulaanbaatar is the capital and largest city of Mongolia. An independent municipality, the city is not part of any province, and its population as of 2008 is over one million....
. In 2000, BDSec became the largest dealer of the Government bond. Upon receiving the official license for underwriting from the Financial Regulatory Commission (FRC) in 2004, it became the first independent underwriter and chief dealer for corporate bonds, and successfully introduced Pumo Bond to the fixed income market. In 2005, BDSec made an agreement with “Moninjbar”, the civil engineering and plumbing company, to act as official underwriter for its “Reformation Bond”. BDSec went public in 2006 and currently it is the 7th largest MSE-listed company in terms of market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
. In the same year, they underwrote Genco Tour Bureau as our first IPO in the public equity market. They also completed the secondary issue of “Puma Bond” in 2006. In 2007, BDSec entered into an agreement with New-York based brokerage firm, Auerbach Grayson
Auerbach Grayson
Auerbach Grayson & Co is a New York-based stockbroker that deals predominantly in the equity of non-US based companies, catering to institutional investors...
& Co, Inc. which became its official representative in the United States of America. In the same year, they also completed IPOs of HBOIL JSC, Moninjbar JSC and Tuul Songino Water Resource JSC through its underwriting arm.In 2008, BDSec successfully managed MNT 3.2 billion IPO of Khukh Gan JSC, MNT 0.3bn IPO of Naco Fuel JSC, MNT 0.6bn secondary offering of HBOIL JSC and MNT 2.8bn secondary offering for BDSec JSC. They started public education program in 2008 with giving a free lectures and trainings about the capital market to the domestic people. In 2009, BDSec initiated and started "Green IPO" movement that aims to support environment friendly companies to raise capital on the MSE and with necessary working capital. In 2010, total transaction amount executed by BDSec has exceeded over 100 billion MNT and they won the tender to service account holders in Orkhon province (Erdenet city) announced by the FRC. The National Chamber named BDSec the “best entrepreneur of the year 2010”. Considered as one of the fastest growing frontier markets
Frontier markets
Frontier Markets is an economic term which was coined by International Finance Corporation’s Farida Khambata in 1992. It is commonly used to describe a subset of emerging markets ....
, Mongolian stock market was one of the best performing markets in 2010. BDSec has kept its leading position and set a new record on amount of single transaction
Transaction
Economic and financialA financial transaction is an agreement, communication, or movement carried out between separate entities or objects, often involving the exchange of items of value, such as information, goods, services, and money. It is still a transaction if you exchange the goods at one...
of US$17 million.
In 2011, BDSec introduced few new issuance to the Mongolian securities market, namely Silikat IPO, Just Agro bond
Bond
Bond, bonds, bonded, and bonding may refer to:* Peace-bonding, something which makes a weapon unusable as a weapon- Fiduciary :* Bond , in finance, a type of debt security...
and Sharyn Gol rights issue
Rights issue
A rights issue is an issue of additional shares by a company to raise capital under a seasoned equity offering. The rights issue is a special form of shelf offering or shelf registration. With the issued rights, existing shareholders have the privilege to buy a specified number of new shares from...
, all of them being the first ones in 3 years.
External links
- official webiste
- http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=44462331
- http://www.frontiersinsight.com/company_page.php?company=3336&company_page_profile=company_profile
- http://classified.japantimes.com/ads/pdfs/20110801-mongolia.pdf
- http://www.mongolchamber.mn:8080/ccip1/pub/cci/member/viewmemberen/101;jsessionid=6540464077746CF5541CD30F4B205B87