Ecopro Materials Said to Plan Raising $377 Million in Korea IPO

Ecopro Materials Co., a maker of a key component used in electric-vehicle batteries, is seeking to raise at least 500 billion won ($377 million) in an initial public offering in Korea, according to a person familiar with the matter.

(Bloomberg) — Ecopro Materials Co., a maker of a key component used in electric-vehicle batteries, is seeking to raise at least 500 billion won ($377 million) in an initial public offering in Korea, according to a person familiar with the matter.

The funds will enable the company to build two plants that produce precursors, the person said, asking not to be identified as the issue is private. Ecopro Materials — founded in 2017 by Ecopro Group and China’s GEM Co. — is aiming for a valuation of at least 3 trillion won, based on recent share gains by affiliates Ecopro BM Co. and Ecopro Co., the person added.

Ecopro BM, which makes cathode active materials for batteries, is up 200% in Seoul this year, while holding company Ecopro Co. has soared 521%, boosted by demand for EVs and optimism they’ll benefit from US President Joe Biden’s Inflation Reduction Act, which aims to reduce reliance on Chinese companies.

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Ecopro Materials is planning to more than double production capacity at its plants in Pohang, South Korea, as well as build new factories in Hungary and another in Quebec with Ford Motor Co. and SK On Co.

Ecopro Materials will submit an application to the Korean exchange at the end of April for a preliminary review of the IPO and may be able to list in the second half, a spokesman said, confirming an earlier report by Yonhap News.

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