Ecopro BM shares have dropped sharply following the announcement of a capital increase worth 1.2 trillion won.
As of 1:40 PM on July 1, the Korea Exchange reported that Ecopro BM's stock price fell by 11,300 won (7.93%) to 131,200 won. At one point during the trading session, shares plummeted nearly 9% to 130,100 won.
The significant decline in stock price is attributed to the large-scale capital increase announced after the previous day's market close.
Ecopro BM disclosed that it has decided to issue 9,909,990 common shares through a rights offering and a public offering for any unsubscribed shares. The total amount to be raised is approximately 1.2 trillion won, which represents 10.1% of the existing shares.
The company plans to allocate 915 billion won of the raised funds to secure a stake in the BNSI nickel refinery in Indonesia and for additional investment in its factory in Hungary. Additionally, 135 billion won will be used for operating expenses, including raw material purchases, while 150 billion won will be directed towards facility investments.
Jin Myung Lee, a researcher at Shinhan Investment Corp, stated, "The dilution of earnings per share (EPS) due to the capital increase is unavoidable, so the short-term stock momentum will be limited. It will take time for the investment effects to be reflected in the results, and uncertainties regarding nickel prices and the recovery of electric vehicle (EV) demand still exist."
* This article has been translated by AI.
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