All data are based on the daily closing price as of May 22, 2024

EcoPro Materials Surges 58% in Debut on KOSPI, Raises $323.3 Million in IPO

South Korea's EcoPro Materials, an EV battery materials firm, records a robust 58% surge on its KOSPI debut, raising $323.3 million in the second-largest IPO on the exchange this year. Despite a slowdown in the global EV market, retail investors drive the stock's success
South Korea
e 086520.KQ Blue Chip 150
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EcoPro Materials, a South Korean electric vehicle (EV) battery materials company, witnessed a remarkable debut on Seoul’s main stock exchange, with its shares closing 58% higher than the initial public offering (IPO) price. The Pohang-based company successfully raised 419.2 billion won ($323.3 million) in net proceeds from its IPO, making it the second-largest IPO on the KOSPI exchange in 2023 after Doosan Robotics in September.

EcoPro intends to allocate 311.6 billion won to construct production facilities. Despite institutional investors displaying lesser interest during the IPO, retail investors enthusiastically embraced the stock, driving its valuation to 3.9 trillion won.

Closing at 57,200 won, compared to the IPO price of 36,200 won, the stock’s surge was attributed to retail investor enthusiasm rather than performance fundamentals. The strong debut is notable in Seoul’s IPO market, which has seen decreased activity. Analysts suggest that retail investors, perceiving the stock as undervalued, are the primary force behind its surge.

EcoPro Materials, a major shareholder in the broader EcoPro holding company, reported an operating loss of 6.9 billion won in Q3, impacted by a global EV market slowdown. However, its revenue increased to 240 billion won from 181.1 billion won during the same period. The company specializes in producing precursors, a crucial material in high-nickel EV batteries, supplying notable companies like Samsung SDI and SK On in South Korea.

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