Ecopro Materials Begins Demand Forecast Ahead of 'KOSPI Debut'... Market Cap Up to 3 Trillion KRW

Bookbuilding for Institutional Investors Until the 3rd of Next Month
Expected Offering Price Range: 36,200 to 44,000 KRW

Exterior view of the EcoPro Materials headquarters building

EcoPro Materials, considered the biggest IPO in the corporate public offering market this second half of the year, has been conducting a demand forecast for institutional investors since the 30th. Amid the recent sluggish stock market due to high U.S. interest rates and geopolitical risks in the Middle East, attention is focused on the level at which the public offering price will be set.

According to the financial investment industry, EcoPro Materials is conducting the demand forecast until the 3rd of next month. The company has proposed a desired public offering price range of 36,200 to 44,000 KRW. The total number of shares offered is 14,476,000, of which 11,600,000 shares are for the general public offering, and the remainder is preferentially allocated to the employee stock ownership association. All shares are newly issued. Based on the desired price band, the public offering amount is estimated to be between 524 billion and 636.9 billion KRW. Accordingly, the expected market capitalization is approximately 2.6 trillion to 3.13 trillion KRW.

After the demand forecast, the public offering price will be finalized around the 7th, and the subscription will be conducted over two days from the 8th to the 9th of next month. The scheduled listing date is the 17th of next month.

EcoPro Materials is a company that produces and supplies high-performance cathode materials. It was the first in Korea to mass-produce high-nickel precursors. As of the end of last year, its precursor production capacity is about 20,000 tons, the largest scale in Korea. Precursors are the core raw materials for cathode materials and determine the performance of lithium-ion batteries.

Jae-Hyun Jung, a researcher at DB Financial Investment, said, "With the increasing demand for high-nickel cathode materials for EV batteries, the importance of precursors is further highlighted," adding, "Due to strong environmental policies in major countries such as the U.S. and Europe, precursor demand is also expected to increase sharply." He continued, "EcoPro Materials has the largest high-nickel production capacity in Korea," and "Following the U.S.'s designation of the ‘foreign adversary group’ in 2024, efforts to reduce dependence on China are expected to accelerate, increasing customer preference for EcoPro Materials."

However, the prolonged global tightening policies have led to capital outflows from the stock market, creating an unfavorable market environment. In particular, investment sentiment for secondary battery-related stocks has deteriorated sharply due to sluggish demand caused by economic contraction. EcoPro Materials initially considered the upper limit of the desired public offering price band at 46,000 KRW but lowered it to 44,000 KRW. About 81.3% of the total shares are subject to distribution restrictions, so the freely tradable shares immediately after listing are very limited. The lock-up shares will be released six months after the listing date, and the largest shareholder, EcoPro, has a lock-up period of two years and six months. Jun-Seo Heo, a researcher at Eugene Investment & Securities, said, "Due to the limited tradable shares, it is difficult to predict the short-term stock price direction, but the company's mid- to long-term value will be determined among global precursor companies and domestic cathode material companies."

Industry insiders expect EcoPro Materials to successfully complete its listing smoothly. Kyung Choi, a researcher at Heungkuk Securities, said, "There is no disagreement about the growth of the EV market in the U.S. and Europe," adding, "Considering external environmental changes such as the Inflation Reduction Act (IRA) and the Critical Raw Materials Act (CRMA), EcoPro Materials' precursor competitiveness, with the industry's best technology and production capacity and the strongest value chain outside China, will shine even brighter."

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