Derivatives broker to expand into stockbroking, corporate finance

SINGAPORE - KGI Ong Capital, a derivatives broker formed by the merger of two other firms, aims to expand into corporate finance and securities broking, and has applied for licenses in these fields.

These plans were unveiled on Monday in a statement by the firm, and a briefing helmed by two of its executives.

"We have the advantage of better economies of scale, than if we were individually operating by ourselves," said Mr Foong Hock Meng, co-chief executive of KGI Ong Capital.

"We have clients that are sometimes single product or with two products. With a bigger suite of product offerings within the group, we can do more with each client."

The company is looking to expand into offering corporate finance and advisory services, and in helping firms seek initial public offerings.

It plans to offer stockbroking services, although institutional clients will be targeted as a start before an eventual expansion towards retail clients as well.

The company currently offers trading in derivatives like options and futures, and has both institutional and retail clients in this field.

KGI Ong Capital was formed by the merger of the Singapore operations of KGI Securities Company, and Singapore firm, Ong First Tradition.

KGI Securities, the second-largest securities company in Taiwan, bought Ong First Tradition for about $50 million. The deal was concluded last Tuesday.

As KGI Securities is a wholly-owned subsidiary of Taiwan-listed China Development Financial Holding Corporation, KGI Ong Capital will be an indirect wholly-owned unit as well.