XacBank IPO, one of Mongolia's Top 5 banks, is set to begin this week. Here are some key insights.

Must Knows

• Valuation: XacBank aims to raise ₮37.5 billion by offering 5.01% of its shares to the public at ₮677 per unit. As a result, the bank will get valued at ₮712.7 billion after the IPO.
• Allocation: The bank plans to allocate 70% of its IPO shares to strategic investors and the remaining 30% to the general public.
• Subscription Period: May 29-June 5.

What sets apart XacBank?

• High ROE: XacBank 's return on equity (ROE) for the previous year stood at 27.6%, surpassing the average of the Top 5 banks. Furthermore, the bank's total assets have grown by 13.4% over the past year, reaching ₮4 trillion.
• Low NPL: XacBank boasts the lowest percentage of non-performing loans (NPL) among systematically important banks, with NPL standing at 4%.
• Low ownership concentration: No single shareholder owns more than 20% of the bank’s stakes. It’s important to highlight that it will soon become a legal requirement starting next year. XacBank is the only bank that meets this requirement currently, as its parent company, Tenger Financial Group, is owned by 12 unrelated organizations and individuals.

  FYI: Rhinos Investment LLC is the lead underwriter and Ulzii & Co Capital LLC is the co-underwriter for the IPO.