[Funding] EcoPro BM, Smooth Fundraising Amid Performance Improvement

Q1 Sales Increased 150% Year-on-Year
Rising Anode Material Sales Drive Requests for Local Overseas Production
Raised 500 Billion Won to Invest in Overseas Subsidiaries

[Asia Economy Reporter Hyungsoo Park] As concerns over stagflation grow, volatility in the domestic stock market is increasing. Listed companies seeking to raise funds by issuing new shares are anxiously worried that falling stock prices may disrupt their plans. Ecopro BM, which is conducting a rights offering followed by a general public offering of forfeited shares, is expected to raise more funds than initially planned based on improved performance.

According to the Financial Supervisory Service's electronic disclosure system on the 3rd, Ecopro BM is conducting a paid-in capital increase by allocating 0.056 new shares per existing share. It will issue 1,611,344 new shares to raise 500 billion KRW. The planned issue price per new share is 310,300 KRW, and the final issue price will be confirmed on the 13th of next month. The record date for new share allocation is the 10th of this month, and subscription will be accepted from existing shareholders over two days, from the 16th to the 17th of next month.

Currently, Ecopro BM's stock price has surpassed 500,000 KRW. It has risen more than 20% compared to the closing price of 423,800 KRW on the 6th of last month when the board resolved the capital increase. Ecopro BM's market capitalization has taken the top spot in the KOSDAQ market. The initial issue price and the scale of fund-raising are expected to be higher than planned.

Ecopro BM achieved sales of 662.5 billion KRW and operating profit of 41.1 billion KRW in the first quarter of this year. These figures represent increases of 151.7% and 130.3%, respectively, compared to the same period last year. Despite concerns that the ongoing shortage of automotive semiconductors could hinder the growth of the electric vehicle market, the company posted solid results. Ecopro BM explained that sales of nickel-cobalt-aluminum (NCA) and nickel-cobalt-manganese (NCM) cathode materials increased, achieving the highest quarterly sales. Profitability improved as production of NCA at the Pohang Plant 6 (CAM6) increased.

Yoon Hyukjin, a researcher at SK Securities, said, "automakers facing a shortage of automotive semiconductors are allocating more semiconductors to new electric vehicles," adding, "The automakers' strategy strongly supports the demand for Ecopro BM's high-nickel cathode materials."

Ecopro BM is responding to increasing requests for local production overseas by establishing overseas production facilities. This is the reason for the capital increase. Of the funds raised, 470 billion KRW will be invested in Ecopro Global, the overseas investment holding company. Since appointing Kim Jangwoo as CEO of Ecopro Global in March, the CEO and employees have formed a 'TFT' related to European expansion and are carrying out related tasks. Ecopro Global will not only review but also execute overseas expansion plans for Ecopro affiliates. It will handle local surveys, corporation establishment, licensing, and other related tasks in regions including Europe and the United States, as well as local fundraising and raw material project discovery.

Ecopro Global will proceed with overseas investments by combining an initial capital of 30 billion KRW with an additional 470 billion KRW to be invested by Ecopro BM. It plans to secure cathode active material production lines in Europe and North America and pursue joint ventures with customers. Ecopro Global is also considering strategic partnerships with domestic and international raw material suppliers to ensure stable procurement of key raw materials such as nickel and lithium for cathode active materials.

The remaining 30 billion KRW of the raised funds will be used to repay bonds issued through a public offering in July last year.

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