[Edaily Reporter Park Sun-Yeop ] ECOPRO BM CO., LTD.(247540)has decided to conduct a 1.2 trillion won rights offering. While short-term pressure on the stock price is inevitable, analysts suggest that the company should focus on strengthening cost competitiveness in the medium to long term by internalizing its nickel supply chain. Given that nickel accounts for a significant portion of the cost of high-nickel cathode materials, this is seen as a strategy to secure structural competitiveness through upstream investments.
Lee Jin-myung, a senior analyst at Shinhan Investment Securities, stated in a report on the 1st, “The core of this rights offering is not merely an expansion of capital expenditure but securing structural cost competitiveness through the vertical integration of the nickel supply chain,” adding, “Vertical integration is positive in terms of strengthening competitiveness in the medium to long term.”

Previously, on the 30th of last month after the market closed, ECOPRO BM CO., LTD. announced a rights offering worth 1.2 trillion won. The planned number of shares to be issued is 9.9 million common shares, representing 10.1% of the existing 97.83 million issued shares. The planned issue price is 121,200 won per share, and the final issue price will be determined on October 12. The new shares are scheduled to be listed on November 5.
The funds raised will be allocated as follows: 915 billion won for the acquisition of securities in other companies, 150 billion won for facility investments, and 135 billion won for working capital. Of this amount, the largest portion—the funds for acquiring securities in other companies—will be used as follows: 765 billion won for investment in the BNSI nickel smelter in Indonesia, and 150 billion won for working capital and additional investment in the Hungarian plant.
BNSI is a 90,000-metric-ton nickel smelter scheduled to begin operations in the second quarter of 2027. ECOPRO CO., LTD plans to secure a 39% stake to become the largest shareholder, thereby laying the groundwork for internalizing the nickel supply chain and consolidating related earnings.
The market reaction was negative. Reflecting concerns over shareholder value dilution due to the rights offering and short-term supply-demand pressures, ECOPRO BM CO., LTD.’s stock price fell 7.8% during regular trading on the day of the announcement. After the market closed, the decline widened to 20% on the alternative trading platform (NXT), significantly dampening investor sentiment.
However, Shinhan Investment Securities viewed the scale of the capital increase as not excessive. The ratio of this capital increase is approximately 10.1% of the existing number of issued shares, and the post-issuance dilution rate is estimated at 9.2%. Additionally, the firm assessed that ECOPRO CO., LTD., the largest shareholder, committing to subscribe for 100% of the offering and participate in a 120% oversubscription could partially alleviate supply-demand pressures. ECOPRO BM CO., LTD. holds a 40.83% stake.
The analyst explained, “Since nickel accounts for more than 50% of the cost of high-nickel cathode materials, vertical integration is positive in terms of strengthening competitiveness in the medium to long term,” adding, “If BNSI is consolidated into the financial statements in the future, we also expect an expansion in earnings capacity.”
The additional investment in the Hungarian plant was also interpreted as a strategic move to respond to Europe’s strengthening supply chain policies. It is viewed as positive in terms of expanding local production capacity and securing new customers. The analyst explained that this holds strategic significance in strengthening the company’s local foothold amid growing demands for self-sufficiency in Europe’s battery supply chain.
However, the analyst projected that short-term stock price momentum would be limited. This is because it will take time for the effects of the investment to be reflected in earnings, and uncertainties regarding industry variables—such as nickel prices and the recovery of electric vehicle (EV) demand—remain. It will also be difficult to avoid short-term earnings per share (EPS) dilution resulting from the rights offering.
The analyst stated, “While the integration of the upstream nickel supply chain and the expansion of local production in Europe are positive in the medium to long term, it will take time for the benefits of these investments to be reflected in earnings,” adding, “Considering the short-term EPS dilution resulting from the rights offering, stock price momentum is expected to be limited for the time being.”