EcoEye Continues Rapid Growth Through Carbon Emission Credit Sales

Specialized in Greenhouse Gas Reduction Projects... Carbon Emission Rights Sales
Expansion of High-Efficiency Cookstove Distribution, Biomass Power Generation Using Rice Husks
Demand Forecasting for Institutional Investors from 19th to 25th

EcoEye will expand its overseas greenhouse gas reduction projects using funds raised through its initial public offering (IPO).

According to the Financial Supervisory Service on the 16th, EcoEye plans to offer 2,079,000 new shares for its listing on the KOSDAQ market. The expected price range for the offering is 28,500 to 34,700 KRW per share. The estimated market capitalization is between 281.7 billion and 343 billion KRW, with the expected amount to be raised ranging from 59.3 billion to 72.1 billion KRW. From the 19th to the 25th, demand forecasting will be conducted targeting institutional investors, and the offering price will be finalized.

Founded in 2005, EcoEye specializes in greenhouse gas reduction projects that reduce emissions generated from corporate activities and daily life. The company sells carbon credits issued through certification by international organizations (UNFCCC) and private certification bodies, corresponding to the amount of greenhouse gas reduction achieved.

EcoEye reduces greenhouse gas emissions by replacing traditional cooking stoves (cookstoves) used in developing countries with high-efficiency products. These high-efficiency cookstoves not only reduce greenhouse gas emissions but also decrease firewood consumption and reduce the emission of toxic gases caused by incomplete combustion. The company also operates various greenhouse gas reduction projects such as the PNG leak prevention project, which reduces carbon emissions by repairing gas pipeline leaks, and mangrove afforestation projects that absorb carbon through forestation.

Na Seung-doo, a researcher at SK Securities, explained, "The Clean Development Mechanism (CDM) overseen by the UNFCCC was the starting point for EcoEye's business," adding, "It utilizes a system where developed countries with greenhouse gas reduction obligations recognize the reduction achievements made in developing countries." He further stated, "Looking at EcoEye's performance growth over the past three years, the importance of carbon credits and the market growth potential are evident," and added, "Companies operating in the global market must secure carbon credits and transition to eco-friendly businesses."

EcoEye's sales increased to 27 billion KRW in 2021, 60.1 billion KRW in 2022, and 53.3 billion KRW in the first half of this year. Operating profits during the same periods were 10.2 billion KRW, 15.6 billion KRW, and 15.9 billion KRW, respectively.

Based on cumulative certification performance in the Korean emission trading registry system, EcoEye holds a 55.3% market share in overseas external project certification (i-KOC) and 13.1% in domestic external project certification (KOC). Given its high market share in its core business area of overseas greenhouse gas reduction projects, EcoEye is recognized as a leading company in this field.

Maintaining competitiveness in the overseas greenhouse gas reduction sector requires collaboration with local institutions conducting reduction projects. Due to the many considerations such as carbon credit-related policies, laws, and market changes, the entry barrier is high. Implementing greenhouse gas reduction projects takes at least three years, including securing investment funds, establishing business plans, third-party verification, host country approval, and measurement, reporting, and verification (MRV) of emissions. EcoEye, with its outstanding track record, experience, and know-how, is expected to continue growing for the foreseeable future. CEO Lee Soo-bok stated, "We have secured leading expertise in greenhouse gas reduction projects in the carbon credit market."

EcoEye plans to expand the countries and regions where it operates greenhouse gas reduction projects and diversify its projects to create continuous growth momentum. Using the funds raised from the offering, the company will distribute an additional 1.5 million high-efficiency cookstoves in Myanmar and Bangladesh. It will also expand the distribution of high-efficiency cookstoves in Uganda and Kenya by 2026. Additionally, EcoEye plans to reduce greenhouse gases through biomass projects. It has set plans to carry out biomass power generation projects converting rice husks into energy in Vietnam, Cambodia, and Myanmar. Through these new greenhouse gas reduction activities, the company aims to secure a total of 1,259 million tCO2e (tons of carbon dioxide equivalent). tCO2e refers to the amount of greenhouse gas emissions converted into carbon dioxide equivalent.

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