Up 173% from IPO price by the 23rd
Overwhelming No.1 in individual net buying... Possible inclusion in KOSPI 200 in December
This year, Ecopro Materials, a subsidiary of the Ecopro Group that has garnered the most attention in the stock market and is considered a major IPO, continues to be a hot topic even after its listing. The stock price, which started in the 40,000 KRW range, is now eyeing 100,000 KRW within five trading days, and the trading volume has surpassed Samsung Electronics due to a continuous influx of individual net buyers.
According to the Korea Exchange on the 24th, Ecopro Materials closed at 99,100 KRW, up 8.66% from the previous day. After rising 58% on the first day of listing and hitting the daily upper limit for two consecutive days, Ecopro Materials took a breather with a drop of over 5% on the 22nd, then rebounded the next day, bringing the 100,000 KRW mark within reach. This marks a 173% increase compared to the public offering price of 36,200 KRW.
Reflecting the ongoing interest, trading volume has surged. From the 17th to the 22nd, following its listing, Ecopro Materials recorded a trading volume of 5.7874 trillion KRW, surpassing Samsung Electronics to take first place. During the same period, Samsung Electronics’ trading volume was 3.12 trillion KRW. The average daily trading volume of Ecopro Materials during this period was approximately 1.4468 trillion KRW, nearly double Samsung Electronics’ 779.9 billion KRW. On this day as well, Ecopro Materials’ trading volume was 711.5 billion KRW, topping Samsung Electronics’ 486.1 billion KRW.
Individual investors focused their net buying on Ecopro Materials. From the 17th to this day, individuals net purchased 276.8 billion KRW worth of Ecopro Materials shares. Considering that SK Hynix, the second most purchased stock by individuals, had a net purchase volume of 72.3 billion KRW, the buying pressure on Ecopro Materials was overwhelming. During the same period, individuals net sold 746.9 billion KRW in the KOSPI market. Foreigners and institutions were the top net sellers of Ecopro Materials during this time, with foreigners selling 138 billion KRW and institutions 145.4 billion KRW respectively.
As the stock price rose rapidly, the Korea Exchange designated Ecopro Materials as an investment caution stock on the 22nd. The Exchange’s market alert system notifies investors of potential risks for stocks where trading is concentrated in a few accounts or the stock price surges sharply over a certain period, indicating possible unfair trading. The system is divided into three stages: Investment Caution → Investment Warning → Investment Risk.
Some securities firms have also restricted margin trading on Ecopro Materials due to the rapid price increase. KB Securities raised the margin requirement for Ecopro Materials from 40% to 100% on the 21st. When a 100% margin requirement is applied, new margin loans and extensions of existing loans are restricted.
With the market capitalization rapidly increasing alongside the stock price, there is speculation about Ecopro Materials’ inclusion in the KOSPI 200 next month. On this day, Ecopro Materials’ market cap was 6.7613 trillion KRW, ranking 49th. If the average market cap over 15 trading days after a new listing enters the top 50, special inclusion in the KOSPI 200 index is possible at the nearest futures and options expiration date. Kyungbeom Ko, a researcher at Yuanta Securities, explained, "If the average market cap from the listing date to December 7 remains within the top 50 of KOSPI, there is a possibility of a special inclusion aligned with the December regular rebalancing cycle."
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