EcoPro BM announced a ₩1.2 trillion (approximately $870m) rights issue after the market closed on 30th June, proposing to issue 9.9 million new ordinary shares — equivalent to roughly 10.1% of its existing share count.
The indicative issue price has been set at ₩121,200 per share, representing a 20% discount to the reference price. The final issue price will be confirmed on 12th October, with the new shares expected to begin trading on 5th November. The offering will follow a shareholder-priority structure, with any unsubscribed shares subsequently offered to the general public.
The proceeds are earmarked as follows: ₩915bn (76.3%) for the acquisition of securities in other companies; ₩150bn (12.5%) for capital expenditure; and ₩135bn (11.3%) for working capital. Of the securities-acquisition tranche, ₩765bn will fund an investment through a special-purpose vehicle to acquire a stake in BNSI, an Indonesian nickel smelter, while the remaining ₩150bn will cover operating costs and outstanding capital expenditure at EcoPro BM's Hungarian subsidiary.
EcoPro, the group's holding company, has indicated it will participate in full in the shareholder subscription, and may increase its take-up to 120% of its entitlement should other shareholders leave shares unsubscribed.
The market's initial reaction was swift and severe. Following the announcement, EcoPro BM's shares fell roughly 20% on NXT, South Korea's alternative trading platform for after-hours dealing.
iM Securities, which maintained its "Hold" recommendation on the stock, judged that the short-term market response was "likely to be negative." It cited three headwinds: a demanding valuation of 57 times forecast 2028 earnings; a delayed recovery in the battery-materials sector; and dilution of shareholder value.
The BNSI smelter is targeted to begin operations in the second quarter of 2027. EcoPro Group has been building its position in Indonesian nickel processing since 2022, when it first took a stake in a smelter in the IMIP industrial park to secure offtake volumes. The BNSI transaction represents the second phase of that strategy.
iM Securities acknowledged the strategic rationale, noting that the investment aims to internalise raw-material supply and strengthen local production capacity in Europe over the medium to long term. However, the brokerage cautioned that a genuine re-rating of the shares would require tangible evidence of progress on several fronts: improved utilisation rates at the Hungarian plant, a visible contribution from the BNSI investment to reported earnings, a recovery in demand for cathode materials, and the addition of new customers.