Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Ecopro Co Announces A Rights Offering Worth 676 Billion Won (37% of Market Cap)

Trading Strategies for Ecopro Co & Ecopro HN Post Split

Key Things to Watch in Ecopro HN's Big Rights Offering

StubWorld: What Is Up (Or Down) With Ecopro Co?

Douglas Research Advisory

Event-Driven

<ul>
<li>On 4 September, Ecopro HN announced that it plans to conduct a rights offering capital raise of about 200 billion won. </li>
<li>The company plans to issue 5.67 million new shares and the expected rights offering price is 35,300 won (23% lower than current price). </li>
<li><em><strong>We would not subscribe to this rights offering mainly due to lofty valuations, declining sales and profit growth, continued negative free cash flow, and concerns about excessive shares dilution.  </strong></em></li>
</ul>


On 4 September, Ecopro HN announced that it plans to conduct a rights offering capital raise of about 200 billion won. 
The company plans to issue 5.67 million new shares and the expected rights offering price is 35,300 won (23% lower than current price). 
We would not subscribe to this rights offering mainly due to lofty valuations, declining sales and profit growth, continued negative free cash flow, and concerns about excessive shares dilution.  


Ecopro HN: Rights Offering of 200 Billion Won