China Crystal New Material Holdings Co., a synthetic mica manufacturer based in the Cayman Islands, is set to float on South Korea's secondary KOSDAQ market, the Seoul bourse said Wednesday.

Its shares will begin trading on Thursday, with its initial price set at 3,000 won ($2.5) per share, the Korea Exchange (KRX) said.

It is the first time in four and a half years since a Chinese company has entered the Korean stock market.

Investor sentiment toward locally listed Chinese shares remained cold after a Chinese textile company was expelled in 2011, just months after being listed on the KOSDAQ, for dubious accounting practices.

Established in 2012, China Crystal New Material posted 45.2 billion won in sales from January to September 2015, with its net income standing at 17 billion won during the period. It mainly produces mica powder products and sells them in China.

The company's earlier bid to enter the Taiwanese stock market was rejected in 2014 as it was registered in the Cayman Islands, a major tax haven.

The bourse operator said it hopes the listing could pave the way for other foreign companies to make inroads into the local stock market, vowing to expand their overseas network to promote their listings here.

A total of 24 foreign companies are preparing to enter the Korean market, 15 of them from China and five from the United States, the KRX said. (Yonhap)