Big-cap firms from Brazil mull listing on local KRXSeveral big-cap Brazilian petrochemical makers, resource developers and food companies are seeking to list their shares on the Korean bourse in a bid to tap a new source of funding, market watchers said yesterday.
Brazilian companies that are setting their sights on the Korean stock market include Braskem, the largest petrochemical company in the Americas, and Brasil Foods, the world’s third-largest meat processor.
The Brazilian companies have been sounding out the possibility of share listings on the Korea Exchange (KRX) via the Brazilian unit of Mirae Asset Securities, they said.
The market capitalization of Brasil Foods amounts to around 20 trillion won ($17.8 billion), while that of Braskem reaches 8.3 trillion won.
“Brazilian companies are searching for ways to secure funds in Asia as European economies are in a fix,” said Cho Ung-ki, the president of Mirae Asset Securities. “Currently, Brazil needs funds to power growth. Brazilian companies are showing interest in South Korea as well as Japan.”
The bourse operator KRX said it plans to discuss the matter with its Brazilian counterpart.
“We plan to visit the Brazilian stock exchange and discuss the listing of Brazilian companies on the Korean bourse,” a senior KRX official said.
KRX Chairman Kim Bong-soo is scheduled to visit the Brazilian stock exchange late next month and discuss ways to boost bilateral cooperation.
It is the first time that Brazilian companies are seeking listings on the Korean bourse, though several Chinese and Japanese firms have done so. There are now 19 overseas firms listed on the local exchange, including 16 companies from China.
The KRX has been ramping up efforts to lure more foreign companies and forge partnerships with overseas bourse operators to cope with ongoing consolidation among the world’s major exchanges. Yonhap
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