[Click eStock] "EcoPro BM Executes Paid-in Capital Increase... First Step Toward Overseas Expansion"

[Asia Economy Reporter Myunghwan Lee] DB Financial Investment announced on the 7th that it maintains a buy rating and a target price of 550,000 KRW for Ecopro BM. The rights offering conducted on the 6th is analyzed to be the cornerstone for overseas expansion.

Ecopro BM announced a 50 billion KRW rights offering and a 1:3 bonus issue on the 6th. Of the funds raised through the rights offering, 47 billion KRW will be used to acquire securities of other companies, and the remaining 3 billion KRW will be used for debt repayment. The record date for new shares allocation is July 10, and the new shares are scheduled to be listed on July 7. Of the total 1.61 million new shares issued, 20% will be allocated to the employee stock ownership association, and the remaining 80% will be allocated to existing shareholders. The subscription period for existing shareholders is from June 16 to 17. The record date for the bonus issue is June 28, and the listing date is scheduled for July 15.

DB Financial Investment explained that the funds raised through the rights offering will be invested in Ecopro Global, which will serve as the first step for overseas expansion. Ecopro BM announced in November last year that it would establish Ecopro Global under Ecopro BM for overseas expansion. Under Ecopro Global, Ecopro Europe and Ecopro America will be established, and joint ventures with partner companies will be formed to build overseas production sites in Europe and North America.

Researcher Jaehun Jung of DB Financial Investment evaluated this rights offering as "the first decision marking the full-scale overseas expansion, meaning more than just simple fundraising." He added, "Since the overseas expansion plan that the market had anticipated has materialized, it will be positive for the stock price," but also stated, "The target price adjustment reflecting dilution from the rights and bonus issues will be made after the issuance price of the new shares is confirmed."

This content was produced with the assistance of AI translation services.