HBO Initiaton Coverage

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We are initiating coverage of HBO with a Buy Rating and a 3-5 year price target of 8160 MNT per share, a valuation nearly 2400% higher than current levels. In a move that made international news, HBOil JSC (MSE:HBO) announced on June 18th that they had agreed to acquire, in 2 separate transactions with Singapore’s Ninox Energy Limited (“NEL”): (i) 20% of the shares in the capital of KOEC International Inc (“KOECII”), and (ii) 51% of the shares in the capital of Korex Ltd (“Korex”). For avoidance of doubt, and as publicly announced by HBO; HBO is effecting the aforesaid transactions, through the acquisition of shareholdings in NEL’s intermediate holding companies, namely; Ninox Hydrocarbons (L) Berhad, and Blacktip Energy Inc.

HBO Initiation Coverage