[Edaily Reporter kyoungeun kim ] ECOPRO BM CO., LTD.(247540)is plummeting in after-hours trading after announcing a decision to conduct a large-scale rights offering following the market close on the 30th.
According to MP Doctor, as of 4:25 p.m. on the 30th, ECOPRO BM CO., LTD. is trading in the after-market at 127,400 won, down 27,100 won (17.54%) from the previous day.
Although the stock closed at 142,500 won—down 7.77%—during regular trading hours, the post-market decline is believed to be due to the announcement of the large-scale rights offering after the market closed.

ECOPRO BM CO., LTD. announced today that it has decided to conduct a rights offering followed by a public offering of unsubscribed shares, totaling 1.19999988 trillion won. The number of new common shares to be issued is 9,900,990, with a par value of 500 won per share. The total number of shares outstanding prior to the capital increase was 97,830,434, and this capital increase will increase the number of outstanding shares by approximately 10%.

The proceeds are scheduled to be used for facility investments (150 billion won), working capital (134.99988 billion won), and the acquisition of securities from other companies (915 billion won).

The parent company, ECOPRO CO., LTD, will acquire 4,366,131 shares of ECOPRO BM CO., LTD for 529,175,070,000 won. As a result, ECOPRO CO., LTD’s holdings in ECOPRO BM CO., LTD will increase to 44,309,298 shares, raising its ownership stake to 41.13%.

Analysts suggest that the large-scale rights offering has sparked selling pressure among existing shareholders due to concerns over dilution of share value resulting from the issuance of new shares.