Samsung bio unit seeks listing on NASDAQ

Samsung Biologics, a unit of the Samsung Group that provides manufacturing service of biological antibodies, is considering listing on the NASDAQ instead of KOSDAQ, industry sources said.

Stock market watchers here say that if Samsung Biologics offers its shares on the domestic bourse, its market capitalization will easily exceed 10 trillion won ($8.75 billion) and even approach 20 trillion won, emerging as the market leader upon debut. So why venture abroad?

Market analysts say Samsung Biologics is concerned that the local bourse is too small to raise sufficient funds for the public offering estimated to be about 4.2 trillion won. But officials at the Korea Exchange say the local bourse is big enough to absorb the shares. They noted that when Samsung Life Insurance offered shares worth 4.88 trillion won in 2010, it drew more than 20 trillion won in subscription deposits. 

Industry sources said the domestic stock market could ill afford to miss the capital chance by letting the company opt for NASDAQ.

It would also influence other biological manufacturers to follow the Samsung subsidiaries, because Samsung Bioepis, a bio similar manufacturer, has already decided to list on NASDAQ, the sources said. Other analysts cite better protection of shareholder rights on the U.S. stock market as another advantage of listing on NASDAQ. 

''For example, the Samsung Group might find it more difficult to hold sway on the operational control of its unit," said an analyst, asking to remain anonymous.