Graphy Decides to Issue 48.3 Billion KRW Zero-Coupon Convertible Bonds, 19% Dilution Risk and Uncertain M&A Fund Usage
Graphy resolved on July 13, 2026, to issue its 6th series unregistered zero-coupon unsecured private convertible bonds worth 48.3 billion KRW. The conversion price is 18,318 KRW, slightly above the current stock price of 18,500 KRW, and the number of shares to be issued upon conversion is 2,636,750, equivalent to 19.09% of total outstanding shares, leading to inevitable dilution for existing shareholders.
Of the proceeds, 8.1 billion KRW will be used for operating purposes such as overseas sales network expansion, marketing, and raw material purchases, while 40.2 billion KRW is allocated for acquisition of securities of other companies, but the specific target and conditions are yet to be determined, creating uncertainty.
The bonds include a put option starting 30 months after issuance and a call option for the issuer exercisable from 12 months to 30 months, with the call option limited to 35% of the issuance amount. Both coupon and yield to maturity are 0%.
Major subscribers are funds managed by leading domestic securities firms including NH Investment & Securities, KB Securities, and Samsung Securities, indicating credible counterparties. However, the potential large-scale conversion into common shares may pressure the stock price.
[AI Summary]Graphy's large-scale convertible bond issuance will dilute existing shareholders by 19% of outstanding shares. A significant portion of the funds is allocated for unspecified M&A, raising concerns about capital allocation efficiency. While the zero-coupon condition and near-market conversion price reduce immediate financing costs, the long-term dilution risk is substantial and warrants investor caution.
KOSDAQ Filing Information
Report On Major Events (Decision On Issuance Of Convertible Bonds)