“Mosgorlombard” may become a participant in precious metals trading on the Moscow Exchange. The board of directors of MGKL, which manages the pawnshop network, will consider the issue of participating in precious metals trading on the exchange on March 21
The board of directors of MGKL, which manages the Mosgorlombard network, will consider the issue of participating in precious metals trading on the Moscow Exchange at a meeting on March 21, 2024. This is stated in the company’s statement.
“If the board of directors decides to organize precious metals trading on the Moscow Exchange and subsequently admits it to trading, MGKL will become the only participant in the secondary circulation of precious metals that will be able to carry out such transactions on the Moscow Exchange,” the company said in a statement.
According to MGKL CEO Alexey Lazutin, the company meets most of the requirements for admission to participation in the precious metals exchange market.
One of the areas of work of MGKL is the wholesale purchase and processing of scrap precious metals for the supply of pure gold to banks (in the form of investment bars) and jewelry manufacturers. Currently, transactions with precious metals are carried out directly with market participants, usually in the form of forward contracts for the supply of physical gold through refineries.
Mosgorlombard raised more than ₽300 million during an IPO on the Moscow Exchange
Mosgorlombard held an IPO on the Moscow Exchange in December 2023. The placement took place at a price of ₽2.5 per share. During the IPO, the company raised more than ₽300 million. As a result, the company’s market capitalization at the start of trading was estimated at ₽3.17 billion. As part of the IPO, investors were offered shares of an additional issue. Following the placement, the share of shares in free circulation (free-float) was 14.6%.
“Mosgorlombard” is one of the oldest in Russia and currently the largest retail pawnshop network in Moscow. It has 109 branches in Moscow and the Moscow region. According to the company’s estimates, the number of its clients in Moscow exceeds 100 thousand, with more than 700 people visiting the pawnshop every day.
The MGKL Group is developing a pawnshop line, which operates under the brand “Mosgorlombard” (“Avto-Lombard Equivalent”, “Lombard Platinum”), resale of highly liquid goods “Resale-Market” (“Resale”, “Glavmostorg”). In addition, MGKL operates in the secondary market of precious metals – one of MGKL’s subsidiaries is a wholesale trader of precious metals, operating under the brand LOT-ZOLOTO (“Lot-Zoloto VAT”).