Ecopro HN: Rights Offering of 200 Billion Won

• 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.