Graphy decides on third-party allotment of convertible preference shares raising 12.1 billion won with potential 5.9% dilution for existing shareholders

Graphy's board decided on July 13, 2026 to issue 660,541 convertible preference shares to institutional investors via a third-party allotment.
The issue price is 18,318 won per share, raising a total of 12.1 billion won for operating funds and potential securities acquisition.
Upon full conversion, common shares outstanding would increase by 5.91%, diluting existing shareholders.
The conversion price can be adjusted downward to 14,655 won if the stock price declines, increasing dilution risk.
The investors are established institutional funds via trust accounts, ensuring credible capital raising.
[AI Summary]The convertible preference shares carry a low 1% dividend and no voting rights, providing cheap financing. However, dilution risk from conversion, especially with downside adjustment, poses a threat to current shareholders. Proceeds will fund overseas expansion and potential M&A, which could drive long-term growth but the M&A target is not yet confirmed.