[Edaily Reporter kyoungeun kim ] ECOPRO BM CO., LTD.(247540)has decided to conduct a 1.2 trillion won rights offering, marking its largest fundraising effort since going public. Amid growing distrust toward the KOSDAQ market as a whole, market observers say the surprise announcement of the rights offering after the market closed significantly shook investor sentiment.

According to MP Doctor on the 1st, ECOPRO BM CO., LTD.(247540), which announced a 1.2 trillion won rights offering after the close of regular trading the previous day, saw its stock price plummet after the market opened, closing at 132,000 won—down 6.88% from the previous trading day. ECOPRO CO., LTD(086520), the holding company participating in the rights offering, fell even further, closing at 93,000 won—a sharp drop of 12.76%.
This rights offering is intended to enable the company, as a major shareholder, to participate in the “BNSI Smelter” project within IGIP—the second phase of investment following the first phase (IMIP) in the Indonesian nickel smelter. ECOPRO CO., LTD. and ECOPRO BM CO., LTD. plan to lead the nickel smelting project as major shareholders holding a total of 39% of the equity—a significant increase from their original plans—with total investment costs amounting to approximately 1.5 trillion won.
To this end, ECOPRO BM CO., LTD. held a board meeting the previous day and decided to conduct a paid-in capital increase by issuing 9,900,990 common shares. This capital increase will proceed via a rights offering followed by a public offering of unsubscribed shares; the planned issue price is 121,200 won, and the final issue price will be determined on October 12.
Of the total 1.2 trillion won raised, 915 billion won will be used to acquire a stake in BNSI and fund the remaining investment in the Hungarian subsidiary; 135 billion won will be allocated to working capital, such as the purchase of raw materials; and 150 billion won will be allocated to facility construction. Subscription will be open to the employee stock ownership association and existing shareholders on October 15–16, while the general public subscription will take place on October 20–21. The new shares are scheduled to be listed on November 5.
ECOPRO CO., LTD, the holding company, decided to subscribe for 120% more than its allocated share in this rights offering to dispel concerns about shareholder value dilution. ECOPRO CO., LTD stated, “Amid prolonged high interest rates, we will secure substantial investment funds in a timely manner through this rights offering rather than resorting to large-scale borrowing that would increase the company’s long-term financial burden, thereby strengthening the group’s overall financial stability and business competitiveness.”
However, the market reaction was lukewarm. In after-hours trading the previous day, ECOPRO BM CO., LTD.’s stock price fell by as much as 20% at one point, indicating a significant decline in investor sentiment. Analysts suggest that the surprise announcement of a large-scale rights offering after the market closed—amid recent wavering confidence in the KOSDAQ market—acted as a negative factor.
Given the sharp cooling of investor sentiment, attention is now focused on whether the Financial Supervisory Service (FSS) will include this rights offering in its list of cases subject to in-depth review. An FSS official told E-Daily in a phone interview, “The decision on whether to subject a case to in-depth review is determined by considering factors such as the intended use of funds and the interest coverage ratio, which indicate the company’s ability to repay debt,” adding, “Considering the potential impact of such a decision on the stock price, it is difficult to confirm at this time whether this case will be included.” It is expected that the appropriateness of the rights offering will be thoroughly evaluated, taking into account the intended use of the raised funds and the company’s limited financial capacity.
In the securities industry, while the strategic direction of internalizing the nickel supply chain is generally viewed positively in the medium to long term, the prevailing view is that short-term stock dilution is inevitable.
Ahn Hoi-soo, an analyst at DB Securities, said, “Since this is a long-term investment with a payback period of over 10 years, nickel prices will be a key variable in determining the future profitability of the investment,” and added, “We are lowering the target stock price to 210,000 won, a 12% reduction from the previous level, to reflect the dilution from the rights offering.” However, given that the recent sharp drop in the stock price has increased its valuation appeal, he upgraded the investment rating to “Buy.”
Lee Jin-myung, an analyst at Shinhan Investment Securities, assessed, “The capital increase ratio is not excessive, and the fact that the largest shareholder, ECOPRO CO., LTD, has agreed to participate in 100% of the subscription and 120% of the oversubscription will partially alleviate supply-demand pressures.” However, he projected that short-term stock price momentum would be limited, as it will take time for the investment effects to be reflected in earnings, and uncertainties remain regarding industry variables such as nickel prices and the recovery of electric vehicle (EV) demand.
Choi Tae-yong, an analyst at DS Investment & Securities, predicted, “The dilution effect on the 2027 estimated earnings per share (EPS) will be offset—and may even result in an increase—by the contribution to net income from the consolidation of BNSI,” adding, “Downward pressure on the stock price will gradually ease as earnings visibility improves following the start of operations in the second quarter of next year.”