EcoPro BM (247540.KS) drew a subscription rate of 103.25% in its rights offering. The company plans to invest the proceeds in an Indonesian nickel smelter and other assets to strengthen the cost competitiveness of its ternary cathode materials.
EcoPro BM said on the 19th that subscriptions totaling 10,222,629 shares were received for the 9,900,990 new shares on offer, for a final subscription rate of 103.25%. The offering was open to the company's employee stock ownership association and existing shareholders holding subscription rights certificates. The new shares are scheduled to be listed on Nov. 5.
Of the funds raised, EcoPro BM plans to use 765 billion won ($536 million) for the BNSI nickel smelter, the centerpiece of its integrated cathode materials value chain in Indonesia, and 121.1 billion won for its plant in Hungary, its European production base.
The BNSI nickel smelter is a project the EcoPro (086520.KS) group is pursuing with Indonesian nickel miner PT Vale Indonesia (PTVI) and other partners. EcoPro and EcoPro BM are leading the business as major shareholders. The smelter is set to have annual nickel production capacity of 90,000 tons, giving the group a stable source of nickel supply.
Nickel is a key raw material for high-nickel ternary cathode materials. Through the BNSI investment, EcoPro BM intends to build a vertically integrated supply chain running from nickel raw material to precursors and cathode materials. By sourcing its own raw materials, the company aims to reduce exposure to price swings and improve supply stability, strengthening its competitiveness in winning orders from global battery makers and automakers.
"This is a meaningful result that shows shareholders' confidence in the company's mid- to long-term growth strategy and investment plans," an EcoPro BM official said. "We will concentrate the funds we have secured on building out the Indonesian nickel supply chain, raising the cost competitiveness and supply stability of our ternary cathode materials and solidifying a foundation for sustainable growth."