IL Decides to Issue 8th Series Convertible Bonds Worth 17.2B KRW for Operating Funds—Conversion Price at 8,467 KRW (Slight Premium), Potential Dilution Including Existing CBs Reaches 14.98%
On May 29, 2026, IL’s board resolved to issue the 8th series of unregistered, unsecured private convertible bonds worth 17.2B KRW. The conversion price is set at 8,467 KRW, a premium of approximately 4.5% over the recent stock price of 8,100 KRW.
The funds will be used for operating purposes, including securing physical AI-based humanoid operation data, building AI learning and control infrastructure, and expanding mass production systems. The issuance will result in 2,031,416 new shares (5.22% of outstanding shares), and including existing CBs (6th and 7th series), the potential dilution reaches 14.98%.
The bonds carry zero coupon and zero yield to maturity, with a maturity date of June 8, 2031. The conversion price can be adjusted downward to a minimum of 6,774 KRW (80% of the initial conversion price) if the market price declines, implying further dilution risk if the stock price falls.
Bondholders can exercise a put option starting June 8, 2028 (24 months after issuance), while the company or its designee can exercise a call option for up to 30% of the issue amount (approximately 5.16B KRW) every three months from June 8, 2027 to June 8, 2028.
[AI Comprehensive Analysis]This convertible bond issuance aims to raise operating funds. Although the conversion price is at a slight premium, the zero-interest condition, potential downward price adjustment, and high potential dilution of 14.98% (including existing CBs) could negatively affect existing shareholders. Moreover, given that the use of proceeds is not directly tied to immediate revenue generation, it may weigh on the stock price in the short term.
KOSDAQ Filing Information
Filing: Report On Major Events (Decision On Issuance Of Convertible Bonds)