In today’s briefing:
- Ecopro Materials: Announces A Capital Raise Worth 389 Billion Won
- Korea Exchange Highlights 38 Companies That Could Be Delisted in 2025
- DN Solutions IPO: Valuation Insights
- Hyundai Motor Group – $21 Billion Investment in the US [Where Will the Money Come From?]
Ecopro Materials: Announces A Capital Raise Worth 389 Billion Won
- EcoPro Materials announced a capital raise worth 389 billion won. The company plans to issue 5.12 million new shares, representing 7.3% of its current outstanding shares (69.74 million).
- This capital raise is in the form of redeemable convertible preferred shares (RCPS). Conversion price of this RCPS is 75,974 won which is 9.9% higher than current price.
- Ecopro Materials’ share price is down 27% from 27 February 2025. We continue to remain negative on Ecopro Materials.
Korea Exchange Highlights 38 Companies That Could Be Delisted in 2025
- On 26 March, Korea Exchange provided a list of 38 companies in KOSPI and KOSDAQ that are subject to delisting this year.
- These 38 companies have a combined market cap of 3.4 trillion won.
- Many of these companies have received ‘refusals of opinion’ from auditors in the audit report. Some of them also face charges of embezzlement and breach of trust.
DN Solutions IPO: Valuation Insights
- DN Solutions (298440 KS), the third-largest machining centre/turning centre machine tool manufacturer, seeks to raise US$1.1 billion in a KRX IPO.
- We previously discussed the IPO in DN Solutions IPO: The Bull Case and DN Solutions IPO: The Bear Case.
- I examine the syndicate’s valuation methodology. My analysis suggests that DN Solutions is palatable in the low end of the IPO price range.
Hyundai Motor Group – $21 Billion Investment in the US [Where Will the Money Come From?]
- In the past week, one of the biggest stories in Korea has been the Hyundai Motor Group’s mega $21 billion investment in the United States.
- There is a real concern that Hyundai Motor may need to raise external capital to fund its US investments/share buybacks/dividends in 2027/2028.
- Hyundai Motor (005380 KS) remains one of the most undervalued global auto companies. It is trading at P/E of 4.7x in 2025 and 4.5x in 20026.
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