Shares of state-owned enterprises to be offered to public through stock exchangeEconomy
Ulaanbaatar /MONTSAME/. On June 29, the Cabinet made a decision to offer the shares of 25 state-owned enterprises to the public through the stock exchange in 2022-2023, approving the list of the enterprises.
The list of state-owned enterprises that will be subject to the Cabinet’s decision includes 25 companies, such as the Mongolian Stock Exchange, Mongolian Telecom Company, National Reinsurance, Netcom, IT Park, and companies in charge of road maintenance.
The decision is aimed at improving the governance of state-owned and partly state-owned companies, improving management, and making the company’s structure smaller and more efficient, which is in line with the Government’s Productivity Recovery, one of the core objectives of the New Revival Policy.
During the press conference that was held to introduce the Cabinet’s decisions, Director of the Policy Coordination on State Property and Regulation Agency B.Tsengel said, “First of all, 34 percent of the Mongolian Stock Exchange will be publicly traded to the public in the fourth quarter of this year. Whereas, shares of Mongolian Telecom Company and National Reinsurance will be offered in the first quarter of 2023. The issue of the remaining companies will be resolved in the fourth quarter of next year”.
The Cabinet also decided to start merging some of the state-owned enterprises. For example, the decision to liquidate the ‘Mongol Us’ company was made at the meeting to avoid duplication of functions with the Water Agency, which was established recently.
Instructions have been given to the relevant officials to carry out a prompt study on the restructuring, liquidation, and merger of a number of state-owned enterprises.