BDSec

BDSec is a Mongolian securities firm whose activities span stock brokerage, bond and equity underwriting, investment advisory, and securities research. The company traces its origins to 1991, when it was established in Töv Province under the name Bayandukhum as a brokerage and dealing business supporting the receipt and registration of ordinary shares distributed to citizens during Mongolia’s property-privatization process. This origin placed BDSec close to the formation of Mongolia’s modern capital market and the early institutional development of the Mongolian Stock Exchange. In 1995, the business was reorganized as BDSec LLC to provide broader brokerage and dealing services. In 1998, its current management team acquired the company and transferred its headquarters from Töv Province to Ulaanbaatar, positioning it closer to the country’s financial institutions, regulators, issuers, and exchange infrastructure. The company subsequently expanded its role beyond securities dealing. By 2000, it had become the largest dealer of Mongolian government bonds, according to the referenced company history. A major development came in 2004, when BDSec received an underwriting license from Mongolia’s Financial Regulatory Commission. It became the country’s first independent underwriter and a leading dealer for corporate bonds, introducing the Puma Bond to the fixed-income market. BDSec later underwrote the Reformation Bond for Moninjbar, demonstrating its role in helping Mongolian companies access debt capital. In 2006, the firm became a publicly traded company on the Mongolian Stock Exchange and underwrote Genco Tour Bureau’s offering, described in the reference material as the first IPO in Mongolia’s public equity market. It also completed a secondary issue of Puma Bond during the same year. BDSec broadened its equity-capital-markets activity during the following years. In 2007, it entered an agreement with New York-based brokerage Auerbach Grayson & Co. to serve as BDSec’s official representative in the United States. The same year saw BDSec’s underwriting of offerings for HBOil, Moninjbar, and Tuul-Songino Water Resource. In 2008, the firm reported managing several offerings, including equity issues for Khukh Gan and Naco Fuel, a secondary offering for HBOil, and a secondary offering for BDSec itself. These transactions illustrate the company’s combination of brokerage, underwriting, and capital-raising functions. The company also invested in market development and investor education. In 2008, it began a public education program offering free lectures and training on Mongolia’s capital market. In 2009, it initiated the Green IPO movement, intended to support environmentally friendly companies seeking to raise capital on the Mongolian Stock Exchange and obtain funds for operations. In 2010, BDSec stated that the total value of transactions it executed had exceeded MNT 100 billion, and it won a tender to provide services to account holders in Orkhon Province, including Erdenet. The National Chamber recognized BDSec as best entrepreneur of the year in both 2010 and 2011. BDSec’s referenced operating footprint includes its Ulaanbaatar headquarters and branch offices in Orkhon, Dornogovi, Töv, and Darkhan-Uul provinces. Its business is organized around four principal divisions: brokerage, underwriting, investment advisory, and research. During the strong performance of Mongolia’s frontier-market securities sector in 2010 and 2011, BDSec maintained a leading position on the Mongolian Stock Exchange. The reference material states that it executed 68 percent of all MSE transactions in 2011 and introduced or supported several market offerings, including Silikat’s IPO, the Just Agro bond, and Sharyn Gol’s rights issue. Current ownership, executive leadership, website, financial performance, and the company’s present market position are not established by the supplied sources.

BDSec began in 1991 in Töv Province as Bayandukhum, a brokerage and dealing firm created to receive and register ordinary shares distributed to citizens during Mongolia’s property privatization. In 1995, the business was reorganized under the BDSec name to provide more comprehensive brokerage and dealing services on the stock market. In 1998, the current management team acquired the company and moved its headquarters from Töv Province to Ulaanbaatar. This relocation placed the firm in Mongolia’s principal financial center and preceded its expansion into government and corporate securities. By 2000, BDSec had become the largest dealer of Mongolian government bonds, according to the supplied company history. The firm expanded into formal underwriting after receiving a license from Mongolia’s Financial Regulatory Commission in 2004. It became the first independent underwriter identified in the reference material and acted as a chief dealer for corporate bonds. Its introduction of Puma Bond established an early fixed-income milestone, followed by a secondary Puma Bond issue in 2006. In 2005, BDSec agreed to underwrite Moninjbar’s Reformation Bond. BDSec went public on the Mongolian Stock Exchange in 2006. That year it underwrote Genco Tour Bureau’s offering, described by the source as the first IPO in Mongolia’s public equity market. During 2007, BDSec entered a representative agreement with Auerbach Grayson & Co., a New York brokerage, and underwrote offerings involving HBOil, Moninjbar, and Tuul-Songino Water Resource. Its 2008 activity included the Khukh Gan and Naco Fuel IPOs, a secondary offering for HBOil, and a secondary offering for BDSec. Beyond transaction execution, BDSec worked to develop public participation in Mongolia’s capital markets. In 2008, it launched free lectures and training for domestic audiences. In 2009, it initiated the Green IPO movement, seeking to help environmentally friendly companies raise funds through the Mongolian Stock Exchange. In 2010, it reported more than MNT 100 billion in executed transaction value, won a tender related to account holders in Orkhon Province, and received recognition from Mongolia’s National Chamber as best entrepreneur of the year. The recognition was repeated in 2011. During Mongolia’s strong frontier-market performance in 2010 and 2011, BDSec retained a prominent exchange position. The reference material states that it executed 68 percent of all Mongolian Stock Exchange transactions in 2011. It also introduced or supported offerings including Silikat’s IPO, the Just Agro bond, and Sharyn Gol’s rights issue. The company’s described structure comprises brokerage, underwriting, investment advisory, and research divisions, with offices in Ulaanbaatar and branches in Orkhon, Dornogovi, Töv, and Darkhan-Uul provinces. The supplied sources do not establish its current executives, ownership, website, financial condition, or present-day market share.

• 2011

  Reported leading MSE transaction share

  [1]BDSecen.wikipedia.org

  BDSec reported executing 68 percent of Mongolian Stock Exchange transactions and supporting new issues including Silikat, Just Agro, and Sharyn Gol.

• 2010

  Transaction volume milestone and Orkhon tender

  [1]BDSecen.wikipedia.org

  BDSec reported executed transactions exceeding MNT 100 billion and won a tender to service account holders in Orkhon Province.

• 2009

  Green IPO movement

  [1]BDSecen.wikipedia.org

  The company initiated a program intended to help environmentally friendly businesses raise capital on the Mongolian Stock Exchange.

• 2008

  Expansion of underwriting and investor education

  [1]BDSecen.wikipedia.org

  BDSec managed several equity offerings and began a free public education program about the capital market.

• 2007

  United States representative agreement

  [1]BDSecen.wikipedia.org

  Auerbach Grayson & Co. became BDSec’s official representative in the United States.

• 2006

  Public listing and Genco Tour Bureau IPO

  [1]BDSecen.wikipedia.org

  BDSec became publicly traded on the Mongolian Stock Exchange and underwrote Genco Tour Bureau’s public equity offering.

• 2004

  Underwriting license and Puma Bond

  [1]BDSecen.wikipedia.org

  BDSec received an underwriting license and introduced Puma Bond to Mongolia’s fixed-income market.

• 2000

  Government-bond dealing leadership

  [1]BDSecen.wikipedia.org

  BDSec became the largest dealer of Mongolian government bonds, according to the company history.

• 1998

  Headquarters moved to Ulaanbaatar

  [1]BDSecen.wikipedia.org

  The current management team acquired the company and transferred its headquarters from Töv Province to Ulaanbaatar.

• 1995

  Reorganization as BDSec LLC

  [1]BDSecen.wikipedia.org

  The business was reorganized to provide comprehensive brokerage and dealing services on the stock market.

• 1991

  Origin as Bayandukhum

  [1]BDSecen.wikipedia.org

  The company was established in Töv Province as a brokerage and dealing firm supporting the registration of privatization shares.

A domestic Mongolian capital-markets intermediary combining brokerage, underwriting, advisory, and research, with a historical emphasis on broadening access to equity and fixed-income financing.

• Securities brokerage · 1991

  Brokerage and dealing

  BDSec’s core brokerage activity covers dealing in Mongolian securities for clients and supporting participation in the Mongolian Stock Exchange. Its historical dealing work included both government and corporate instruments, making the firm an intermediary between investors, issuers, and the exchange.

• Investment banking · 2004

  Underwriting

  After receiving an underwriting license in 2004, BDSec arranged and supported corporate bond and equity offerings. Referenced transactions include Puma Bond, Reformation Bond, Genco Tour Bureau, HBOil, Moninjbar, Tuul-Songino Water Resource, Khukh Gan, and Naco Fuel.

• Financial advisory

  Investment advisory

  Investment advisory is one of BDSec’s four described business divisions. The supplied material does not provide a detailed breakdown of mandates, client segments, or current advisory products.

• Securities research

  Research

  Research is another of BDSec’s stated operating divisions. It supports the firm’s securities-market activities, although the supplied sources do not specify its publications, coverage universe, or present research structure.

• 2009Green IPO movement

  Mongolia

  BDSec initiated the Green IPO movement to encourage environmentally friendly companies to raise capital on the Mongolian Stock Exchange and obtain working capital.

  Outcome. The supplied material does not identify the number of participating companies or quantify the initiative’s capital raised.

  Source
• 2008Public capital-market education program

  Mongolia

  BDSec began offering free lectures and training to educate domestic audiences about capital markets and securities investing.

  Outcome. The source confirms the program’s launch but does not provide participation figures or a later evaluation.

  Source

• 2007

  International representative arrangementStrategy

  Background

  BDSec pursued broader international access and visibility for Mongolian securities.

  Action taken

  It appointed New York-based Auerbach Grayson & Co. as its official representative in the United States.

  Aftermath

  The agreement created a formal United States representation relationship; the source does not quantify its commercial impact.

  Source

• 2006

  Public listing on the Mongolian Stock ExchangeOther

  Background

  BDSec had expanded its role in Mongolia’s securities market and was participating in corporate capital raising.

  Action taken

  The company became publicly traded on the Mongolian Stock Exchange.

  Aftermath

  BDSec continued underwriting public offerings and later completed a secondary offering for its own shares.

  Source

• 2004

  Expansion into independent underwritingStrategy

  Background

  BDSec sought to expand beyond brokerage and dealing as Mongolia’s securities market developed.

  Action taken

  After obtaining authorization from the Financial Regulatory Commission, the firm entered independent underwriting and corporate-bond dealing, including the Puma Bond.

  Aftermath

  The move established underwriting as a major part of BDSec’s business and was followed by later bond and equity offerings.

  Source

1. 1BDSecen.wikipedia.org