LendMN raises MNT 42.5 billion from its IPO

Mongolia’s first IPO of a non-banking financial institution LendMN has raised MNT 42.5 billion after it listed at the Mongolian Stock Exchange. Fresh from launching its IPO on February 21, LendMN sold 800 million stocks at MNT 25 per lot. Initially, the company offered 25 percent of its shares to raise MNT2.5 billion from the public and another MNT 2.5 billion from strategic investors. Raising 100 percent of its strategic investment, the public offering was oversubscribed by 1500 percent and accumulated MNT 40 billion. Mirae Asset Securities Mongolia, the underwriter of LendMN IPO, refused to comment on the adjustment of oversubscription. According to LendMN, approximately 6600 people purchased the IPO and the early plan includes to set minimum bid lot at MNT 75 thousand and the remaining will be allocated proportionally. This proves the increasing demand for financial market in Mongolia and investors’ confidence in the economy. Experts explain that the high demand is also related to the increased access to stock as the company offered an opportunity to purchase its stock through its smartphone app.

LendMN commenced its operation in April 2017 and is considered the first fintech in Mongolia, offering instant microcredit with an amount of MNT 50 thousand to MNT 1 million to customers through smart device application without collateral. Less than a year after its launch, the company attracted over 30 thousand regular customers and its average monthly new users is around 5-6 thousand. The company provided over 100 thousand short term loans worth MNT 16.7 billion last year and reported that 98 percent of the loan was repaid on time, while the non-performing loans are fluctuating around 0.8 percent. LendMN plans to provide a total of MNT 196 billion loans to 59 thousand customers in 2018.