More than 20 percent of 54 companies listed on the MSE are owned by minority shareholders. It means that ¾ of more than 200 listed companies have high ownership concentration.

The Financial Regulatory Commission has advised the 6 companies that have been listed since 2017 not to offer at least 20 percent to public. As a result, the FRC considers that the company’s transparency will increase. For instance, as of the end of 2018, 1,136 minority shareholders own 36.8% of ‘Itools’ JSC. Also, 2,350 minority shareholders own 30% of ‘Mongol Basalt’ JSC. But the ownership concentration of companies with the largest market capitalization remains high. However, the ownership concentration of ‘Makhimpex’, ‘Mongol Post’ and ‘Suu’ companies have been declining slightly over the last year, according to the survey published by Mongolian Central Securities Depository. In December 2018, ‘Gobi’ JSC made 100-for-1 stock split in order to decrease its ownership concentration and increase its liquidity.

Source: BloombergTv.mn