[Featured Stock] EcoPro HN Hits Upper Limit on First Day After Spin-off Re-listing

[Asia Economy Reporter Ji Yeon-jin] EcoPro HN recorded the upper price limit on the first day of its re-listing after the spin-off.

On the 28th, starting from 9:03 AM, EcoPro HN was traded at 161,700 KRW, up 29.98% from the opening price of 124,400 KRW. The reference price of EcoPro HN was 62,200 KRW, and on the day of re-listing, the opening price was formed at twice the reference price, then it went straight to the upper price limit.

EcoPro HN was newly established through the spin-off of EcoPro's environmental business division. Sangwon Han, a researcher at Daishin Securities, said, "It is common for the holding company to decline and the business company to rise upon re-listing after a spin-off, and we expect a similar stock price trend this time based on past cases. However, we also recommend using the holding company's significant decline below its fair value as a buying opportunity."

EcoPro was established in 1998 for environmental-related businesses. Since then, it has expanded its business by also engaging in the development of materials for secondary batteries. Sales in the environmental business division, including chemical filters, fine dust reduction, and greenhouse gas reduction solutions, grew from 83.1 billion KRW in 2018 to 101.8 billion KRW last year.