Korea Investment & Securities Co. (KIS) will issue $400 million new shares in its Hong Kong entity with an aim to groom the outpost as its financial base in Asia.
The subsidiary of Korea Investment Holdings Co. said Friday the offering would account for more than 10 percent of the brokerage’s total capital base as of late June. With the latest rights issue, the equity capital of the Hong Kong office would jump to $410 million.
It plans to use the proceeds to set up a global trading center in Hong Kong and gradually expand its businesses in the market.
The move is part of the brokerage’s plans to step up operations across Asia. Earlier this year, it issued new shares for its Vietnamese branch and started trading in derivatives in July. It also kicked off its Indonesian subsidiary this summer.
“It’s been over 10 years since we ventured into Vietnam and we’re now starting to see some progress. We hope to make similar progress in Indonesia in 10 years’ time but it could take longer,” said Kim Nam-gu, vice chairman of Korea Investment Holdings.
Hong Kong is a major international financial center with close access to mainland China. The World Economic Forum ranked the city’s financial sector fourth for its well-developed, highly sophisticated, trustworthy and stable infrastructure.