Ecopro BM shares surged more than 7% in early trading following a request from the Financial Supervisory Service (FSS) to correct its securities registration statement related to a capital increase.
As of 9:07 a.m. on July 15, Ecopro BM was trading at 121,200 won, up 8,600 won (7.64%) from the previous trading day, according to the Korea Exchange.
The rise in share price is attributed to the FSS's request made after the market closed the previous day, citing that the registration statement for the 1.2 trillion won capital increase lacked sufficient details and clarity, potentially hindering investors' ability to make informed decisions.
Following the announcement of the capital increase plan on June 30, Ecopro BM's stock price had previously experienced significant declines, dropping 7.77% and 6.88% on the announcement day and the following day, respectively, marking eight consecutive days of losses.
The correction request has suspended the effectiveness of the securities registration statement. If Ecopro BM does not submit a corrected statement within three months, the original statement will be considered withdrawn. This raises the possibility of changes to the subscription schedule originally set for October.
Ecopro BM plans to use the funds raised through the capital increase, which will be conducted through a rights offering followed by a public offering of any unsubscribed shares, for acquiring securities of other companies (915 billion won), facility investments (150 billion won), and operational funds (135 billion won).
* This article has been translated by AI.
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