Ecopro Materials Co., an EV battery materials supplier, has priced its shares at 36,200 won ($27.68) each in what is South Korea's second-largest initial public offering (IPO) this year. The firm managed to raise 419.2 billion won ($319.2 million) by selling about 11.6 million shares in a deal managed by Mirae Asset Securities Co.
The company initially aimed to price its shares between 36,200 won and 46,000 won each but revised the top end down to 44,000 won due to market volatility in EV stocks and the impact of foreign selloffs following the announcement on September 25.
There was a reduction in the final number of shares sold from an initial plan of 14.5 million shares after approximately 20% of institutional investors offered prices below the marketed range during book-building.
Despite poor earnings for EV-battery stocks and a challenging outlook in the EV sector, as noted by Ethan Aw from Aequitas Research, Ecopro Materials is scheduled to list on the Seoul Stock Exchange on November 17.
The company, which produces cathode material precursors for lithium secondary batteries and is majority-owned by Ecopro Co., opened its subscription to retail investors from Tuesday to Wednesday. This comes amid a challenging period for the EV sector, with some uncertainty surrounding future performance.
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