KOYJ Decides to Issue 1 Billion Won Convertible Bonds at Premium Conversion Price of 3,190 Won, Aimed at Financing Acquisition of Lee Kyung E&C
KOYJ resolved on May 22, 2026 to issue unregistered, non-interest-bearing, unsecured private convertible bonds (3rd series) worth 1 billion won.
The conversion price is set at 3,190 won, a premium of approximately 32% over the recent stock price of 2,410 won, based on a 20% premium on the reference price of 2,658 won.
The bondholder is Ki-young Lee, who sold shares of Lee Kyung E&C to KOYJ on May 20, 2026. The CB issuance aims to secure performance accountability and stability for the acquisition.
Proceeds are fully allocated for operating funds (labor and material costs).
Conversion period is from June 1, 2027 to May 1, 2029, with 313,479 shares issuable upon conversion (5.84% of total outstanding shares).
The issuer holds a call option to purchase up to 30% of the bonds from June 1, 2027 to June 1, 2028 every 3 months. A third party (to be determined) may acquire up to 300 million won (30%), convertible into 94,043 shares (1.83% stake).
Bondholders have a put option for early redemption after June 1, 2027, subject to maintaining 30% unconverted bonds.
The bonds are subject to a 1-year transfer restriction and a 1-year custody at Korea Securities Depository (including 6-month mandatory escrow).
No existing outstanding convertible bonds. Total potential dilution including this issuance is approximately 6.20% (based on 5,056,999 outstanding shares).
[AI Comprehensive Analysis]The issuance at a premium over market price mitigates immediate dilution concerns. However, if the stock price rises, conversion and call option exercise could lead to additional equity dilution. While the purpose of funding operational costs for an acquisition signals business expansion, investors should monitor increased debt burden and potential changes in management control.
KOSDAQ Filing Information
Filing: [Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)