7 companies have raised MNT 60.4 billion from the capital market for the last 3 years. According to the Mongolian Stock Exchange, 20 companies have raised MNT 116.6 billion since 2005. Companies that launch IPOs or FPOs introduce their spending of funds raised from public. The Board re-approves the spending plan after the IPO launching. In other words, spending can be changed if the project is unable to be implemented.

MSE reported that no companies except "Mongol Post" violated the law. In 2015, "Mongol Post" issued additional shares raising MNT 6.3 billion, but the fund was not used on its purpose and the company was fined by FRC.

Professional instituitions check spending of raised funds on regular basis. MSE emphasizes that newly listed companies are regularly reporting their fund spending. For instance, "Itools" JSC reported that the construction of a modular data center in Darkhan is almost completed and it will be ready to start operating after 1 month.

"And Energy" JSC has just started the construction of a new plant. The company is planning to finish it in August.

"LendMN" JSC used 12 percent of its raised fund through IPO and earned net profit of MNT 475 million in the first quarter, which is 20 times higher than the 2017 annual net profit.

Source: BloombergTv.mn