Eco Pro Materials Makes a Strong Debut on KOSPI
On the morning of the 17th, Eco Pro Materials made its highly-anticipated debut on the KOSPI, closing about 60% higher than its initial public offering price. The listing ceremony, held at the Seoul office of the Korea Exchange, marked a successful entry into the stock market for the company, amid predictions of a slow IPO market following the Fado insolvency listing controversy.
On its first day of trading, Eco Pro Materials saw its stock price close at 57,200, a 58.01% jump from its public offering price of 36,200. The market capitalization also soared from KRW 2.4698 trillion to KRW 3.9026 trillion, securing the 89th place in the KOSPI market capitalization ranking. The stock also topped the list in terms of trading volume, with a transaction amount of 2.178 trillion won.
Despite initial concerns about demand and the controversy surrounding Fado’s listing, Eco Pro Materials’ strong debut has brought a sense of relief to market participants. The company’s CEO, Kim Byeong-cheol, addressed concerns over a third-quarter operating loss, citing declining mineral prices and inventory contraction as contributing factors.
The successful listing of Eco Pro Materials has shifted attention to other upcoming IPOs, such as LS Materials, a subsidiary of LS Cable & System, which is set to hold a public subscription for general investors in early December.
Upcoming IPOs
- Atom: December 21st to 22nd
- Y Biologics: December 23rd to 24th
- KNS: December 27th to 28th
- LS Materials: December 1st to 4th
- Blue M Tech: December 4th to 5th
- DS Danseok: December 14th to 15th
The IPO market is expected to maintain a relatively quiet flow, with a focus on small and medium-sized public stocks following the listing of Eco Pro Materials.
Small but Mighty
Despite the majority of upcoming public stocks having a market capitalization of less than KRW 100 billion, the size of LS Cable & System subsidiary LS Materials and DS Danseok stands out as relatively small for companies looking to make their mark on the KOSPI.
With various industries represented among the upcoming IPOs, including electronic component manufacturing, new antibody drug development, automation equipment manufacturing, industrial special battery production, and biodiesel manufacturing, the year-end IPO market is expected to offer a diverse array of investment opportunities for potential investors.
By Reporter Jeong Hee-kyung
▲ On the morning of the 17th, the listing ceremony of Eco Pro Materials was held at the Seoul office of the Korea Exchange. <한국거래소>
[비즈니스포스트] Ecopro Materials, which attracted attention as the last big stock of the year, closed about 60% higher than its initial public offering price on its first day on the stock market.
There were previously predictions that the initial public offering (IPO) market could face cold water due to the Fado insolvency listing controversy, but as the last big fish of the year announced a good start on the first day of its entry into the stock. small and medium market stocks that are preparing for IPOs in the future can also take a breather.
On the 17th, the first day of listing on KOSPI, EcoPromity’s stock price closed at 57,200, gained 58.01% (21,000) above the public offering price of 36,200.
On this day, the stock price rose to 65,800 which was gained (81.77%) during the day. Market capitalization jumped from KRW 2.4698 trillion based on the public offering price to KRW 3.9026 trillion, rising to 89th place in the KOSPI market capitalization ranking.
The transaction amount was 2.178 trillion won, ranking first among the highest traded stocks in the KOSPI market. This is about 176.7% higher than the trading value of Samsung Electronics (KRW 787.8 billion), a leading stock in the domestic stock market, which is understood to have absorbed a significant portion of the market’s liquidity.
Among historical public offering stocks, it ranks 5th in trading volume on the first day of listing, following LG Energy Solution, Kakao Bank, Krafton, and Kakao Pay.
This is why EcoPromerty is judged to have done relatively well despite the previous slow demand forecast and the controversy surrounding Fado’s insolvent listing.
Fado, along with EcoPromity, received attention as a big hit in the IPO market this year, but became the center of controversy when it posted a significant underperformance just three months after entering the stock market.
Fado’s situation is still ongoing, with the Financial Supervisory Service launching an investigation amid suspicions of an insolvent listing and a class action lawsuit against Fado and its support securities company being announced.
EcoPromerty was also aware of this controversy, and before its listing, CEO Kim Byeong-cheol personally sent a letter to shareholders to explain the decline in performance in the third quarter. EcoPromity posted an operating profit of 15.5 billion won in the first half of the year, but turned to a loss in the third quarter.
CEO Kim Byeong-cheol said, “We apologize for the loss in operating performance in the third quarter prior to listing,” and explained, “Profitability declined in the third quarter due to the decline in mineral prices and the burden of nickel intermediate inventory contracting at a low discount rate.” He also added that nickel prices have recently stabilized and all the bad inventories have been sold out.
Market participants who had been paying close attention to the stock price trend on the first day also seem to have breathed a sigh of relief.
This is because trillion-unit listed stocks get a lot of attention from the market, and since EcoPromity is the last big catch of the year, the listing process and future stock price flow are expected to determine the year-end IPO market atmosphere.
After the listing of EcoPromity, the IPO market is expected to continue a relatively quiet flow, focusing on small and medium-sized public stocks.
▲ LS Materials, a subsidiary of LS Cable & System, will hold a public subscription to general investors in early December.
Based on the subscription date offered by the public, Atom (21st to 22nd), Y Biologics (23rd to 24th), KNS (27th to 28th), LS Materials (December 1st to 4th), Blue M Tech (December 4-5) and DS Danseok (December 14-15) trying to enter the stock market within this year.
Among the majority of public stocks with a market capitalization of less than KRW 100 billion based on the public offering price, the size of LS Cable & System subsidiary LS Materials (KRW 297.7 billion – KRW 372.1 billion) and DS Danseok (KRW 463.1 billion -) 521.7 billion), the last runner on KOSPI, is relatively small. It is considered a great achievement.
By industry, various companies are included, such as Atom (electronic component manufacturing), Y Biologics (new antibody drug), KNS (automation equipment manufacturing), LS Materials (industrial special battery), and DS Danseok (biodiesel manufacturing) is there Reporter Jeong Hee-kyung
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