EcoPro Materials to quadruple precursor output by 2027

South Korea's precursor manufacturer EcoPro Materials, aims to quadruple its production capacity by raising funds between 524 billion won ($390 million) to 665.9 billion won ($496 million) through its initial public offering (IPO).

The company announced on Tuesday that it has initiated the public offering procedures and has submitted a securities report to the Financial Services Commission, aiming for a listing on the stock market.

EcoPro Materials is slated to offer a total of 14,476,000 shares, with a desired price band from 36,200 won ($26.98) to 46,000 won ($34.29).

The proceeds from the IPO are earmarked to boost production capacity. Operating from its Pohang CPM 1 and 2 factories, EcoPro Materials presently produces 50,000 tons of precursor annually. The company has plans to escalate this capacity to 210,000 tons by 2027.

The company is scheduled to begin the construction of factories 3 and 4 in the latter half of this year and is formulating plans for its future expansion into regions including North America and Europe.

By 2027, EcoPro Materials' high-performance nickel-based precursor production capacity is forecasted to represent 7.5% of the total market.

EcoPro Materials is ramping up its R&D efforts to develop next-generation precursors and has recently pioneered the development of single-crystal precursors and cobalt-free precursors.

"EcoPro Materials has effectively established its own value chain, extending from raw material procurement and precursor production to serving the final customer," CEO of EcoPro Materials Kim Byong-hun said. "Through the continuous diversification of our customer base, we are set to evolve into a global precursor corporation."

Write to Hyung-Kyu Kim at khk@hankyung.com