NEXUS Issues 21.2 Billion Won Convertible Bonds, Diluting Shares by 13.1% for Operating Funds
NEXUS has decided to issue 21.2 billion won in 7th series unregistered private convertible bonds with a 0% coupon and a 3.0% yield to maturity, redeemable at 116.1184% after 5 years.
The conversion price is 2,524 won per share, 3.66% below the current market price of 2,620 won. Full conversion would add 8,399,366 new shares, diluting existing shareholders by 13.10%. Including prior bonds, total potential dilution reaches 49.58%.
All proceeds will be used for operating funds, specifically game sourcing and IP acquisition. The bondholders include major institutions such as Webzen, History Investment Advisory, DB Securities, and various funds managed by NH Investment, KB Securities, and others. There is a 1-year lock on conversion and denomination split.
Bondholders have a put option starting 18 months after issuance, exercisable quarterly at a yield of 3.0% per annum. No market price-based conversion price adjustment clause is provided.
From a stock price and investment risk perspective, the 13% dilution may significantly erode shareholder value. However, the use of funds for core business enhancement and the participation of reputable domestic financial institutions provide some positive aspects. No management changes or additional risks were identified.
[AI Summary]NEXUS's 21.2 billion won convertible bond issuance will dilute shares by 13.1%, and including prior bonds, the potential overhang reaches 49.6%, likely pressuring the stock price. While the funds are earmarked for IP acquisition which could boost competitiveness, the near-term dilution effect dominates. Institutional participation ensures stable funding, but conversion rights pose ongoing supply concerns.
KOSDAQ Filing Information
Report On Major Events (Decision On Issuance Of Convertible Bonds)