Venture capital BRV ups investment in EcoPro company

[Courtesy of EcoPro]

BRV Capital Management is expanding its EcoPro investment portfolio with a recent additional investment in the battery materials manufacturing group’s waste battery recycling unit EcoPro CnG. BRV Capital has maintained its second-largest shareholder position within the company since its initial investment in EcoPro Materials.

According to investment banking (IB) industry sources on Monday, BRV Capital will participate in a capital increase planned by EcoPro CnG, aiming to buy an additional 110,000 common shares. BRV Capital is a key shareholder in EcoPro CnG alongside EcoPro, which holds a 47.5 percent majority stake.

The confirmed issuance price for the new shares in the capital increase for EcoPro CnG is 15,000 won ($11.32) per share. Based on the price, it appears that investors have valued EcoPro CnG at an estimated corporate value of around 400 billion won.

While BRV Capital’s investment amount in the capital increase is relatively small, around 1.6 billion won, it is noteworthy as the venture capital (VC) is continuing to invest in the subsidiary despite already being the second largest shareholder.

BRV Capital is a VC that invests in promising technology companies in the Asia region. Led by Chief Investment Officer (CIO) Yoon Kwan and known for its investments in global payment giant PayPal, BRV Capital has also invested in several platforms in Korea, including Zigbang, Today’s House, and Bungaejangter, as well as Shinsegae Group’s SSG.com.

BRV Capital has reportedly invested about 50 billion won so far in EcoPro Materials, a producer of precursors, a key material for cathodes.

BRV Capital valued EcoPro Materials at about 1.65 trillion won for its investment of 45.6 billion won last year. The expected corporate value for EcoPro Materials, which is planning an initial public offering (IPO), is currently estimated to be around 3 trillion won in the market.