DS DANSUK has completed the issuance of the 32nd unregistered, unsecured private convertible bonds (CB) worth 30 billion KRW, with payment date on May 28, 2026.
The conversion price is set at 20,601 KRW, representing a 12.6% premium over the closing price of 18,300 KRW on the decision date (May 20). However, due to a reset clause, the price can be adjusted downward to a minimum of 14,421 KRW (70% of the issue price), increasing dilution risk if the stock price falls.
Upon conversion, 1,456,239 new shares would be issued, representing a potential dilution of 8.2% relative to the total outstanding shares of 17,759,139, which may dilute existing shareholders' value.
The raised funds will be used for operating capital (10 billion KRW for raw material purchases) and acquisition of securities in other companies (20 billion KRW for investment in sustainable aviation fuel (SAF) R&D and manufacturing).
The bonds carry a 0.0% coupon rate and a 1.0% yield to maturity, with redemption at 105.1205% of principal at maturity. Put options are exercisable after 2 years, and the issuer holds call options for up to 30% after 1 year.
[AI Comprehensive Analysis]Although the conversion premium offers short-term downside support for the stock price, the reset clause and potential dilution pose long-term risks. While the investment in SAF provides growth opportunities, existing shareholders must bear the burden of equity dilution.
KOSPI Filing Information
Filing: Result of Issuance of Rights Offering or Equity-Related Bonds (Voluntary Disclosure)