At a time when listing on a European
stock exchange is almost as hard as winning the lottery for an Asian company,
the National Lottery of Mongolia was pleased with the Boerse Berlin approval to
list its owner and operator — Monvest Group Pte. Ltd. (Monvest). Pending the
transfer of Monvest shares to the European Clearstream Depository, the Monvest
listing paves the way to develop the Mongolian lottery industry and to provide
expansion capital for other markets in the region.

“The Berlin approval to list is
a landmark for Mongolia at a time when capital markets are in flux,” says
Dr. Yap, Monvest Chairman. “Global markets are undergoing major changes.
Sino Forest problems in Canada, delisting of China OTC listed companies due to
poor transparency, and the closing of Frankfurt First Quotation Board (FQB) due
to market manipulation have shaken issuers. Our response is to focus on
transparency and establish a solid reputation. This is the best one can do in
these times.”

Monvest is the Singaporean holding
company of Mongolian-based Modern Capital Vest LLC, the lottery operator, and
majority owner of BizInvin LLC, the holder of a lottery license issued by the
Ministry of Finance. Over 80 outlets are operational in the capital city of
Ulan Bator, with a plan to open 150 outlets in 2012. Monvest has launched three
lottery games — 4D Lottery, 6/42 Jackpot Lotto and 6D Lottery.

“This has been a listings
education,” notes Dr. Yap. “The first step of our dream — and that
of our investors — is being realized. We will make the people of Mongolia
proud of our achievements and show that an emerging market company can achieve
the high transparency standards of Europe.” Monvest takes the high road
when it comes to accounting and governance practices. Monvest audits accounts
under IFRS standards and provides regular disclosure to shareholders. Monvest
completes a semi-annual audit, surpassing regulations that require annual
audits. Dr. Yap credits transparency for the success in Berlin. The Boerse
Berlin called for all listed companies to be German registered in March 2012, but
Monvest received an exemption from the exchange to list in June 2012.

Boerse Berlin was founded in 1685
through an edict of Great Elector Friedrich Wilhelm and is one of the oldest
exchanges in Germany. To address internationalization and growing consolidation
pressure, Boerse Berlin has pursued a niche strategy since the 1990s with a
focus on trading a wide range of foreign stocks.

Boerse Berlin has secondary stock
listings for over 6,000 US securities listed on NYSE, NASDAQ, AMEX, OTCBB and
pink sheet markets. While nearly all NASDAQ securities trade in Berlin,
companies from China or Africa are available on this market. International
bluechips are represented as well as small caps with trading in over 15,000
shares from 82 countries. Berlin plays an important role as a capital supplier
to Eastern Europe due to its location in the region. In 2007 Boerse Berlin took
a majority stake in EASDAQ NV, which operates under the brand Equiduct to
expand its European reach. The key European regulatory requirement of best
execution is guaranteed by Equiduct on an order-by-order basis. The launch of
the Equiduct trading platform took place in 2009. Equiduct later entered into a
strategic partnership with Citadel Securities, a division of Citadel Investment
Group, LLC. Equiduct continues to be operated by Boerse Berlin.

“Berlin is the capital of
Germany, and Germany is the center of the Euro zone as the one country that is
maintaining economic progress,” concludes Dr. Yap. “Berlin is an
important first step for us in the German capital market. We expect to move to
the Frankfurt Stock Exchange Entry Standard in short order. If we can achieve
this evolutionary growth it is due to the initial support received from
Berlin.”

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