Exercise of Exchange Rights on EBs Results in 577,800 New Shares Issued at Discount, Weighing on Equity Dilution Risk
Correction of disclosure error: The total face value of the 1st series exchangeable bonds was corrected from 26 billion won to 260 billion won, rectifying a clerical mistake in the initial filing.
Exercise details: Between May 21-26, 2026, a total of 60 billion won worth of perpetual exchangeable bonds were exercised, converting into 577,800 shares (1.53% of total outstanding) at an exchange price of 103,842 won, a discount of approximately 27% to the current market price of 142,100 won.
Remaining exchangeable bonds: Series 1 has 50 billion won remaining (481,500 shares exchangeable), and Series 2 has 85 billion won (740,973 shares exchangeable), posing further dilution risk.
Shareholder impact: The discount conversion erodes existing shareholder value and creates downward pressure on the stock price. Future conversions from remaining bonds could exacerbate dilution.
[AI Comprehensive Analysis]The exchange price at a steep discount (about 27% below market) is unfavorable for existing shareholders, inevitably diluting equity value. If the remaining 135 billion won of exchangeable bonds are fully converted, an additional 3.2% dilution of total shares outstanding could occur, potentially pressuring the stock price in the short term.
KOSPI Filing Information
Filing: [Correction of Description] Exercise of Conversion Rights, Stock Subscription Rights, and Exchange Rights