AST Conversion Rights Exercise: Short-term and Long-term Impact on Stock Price

1. AST’s Conversion Rights Exercise: What Happened?

AST announced the exercise of conversion rights for 4 million shares of its 9th series of convertible bonds. These new shares are scheduled to be listed on August 20, 2025, at a conversion price of KRW 500, representing approximately 1% of existing outstanding shares.

2. Why It Matters: Financial Improvement vs. Stock Dilution

This conversion is expected to positively impact AST’s financial structure. By converting debt to equity, the company can improve its financial stability. However, the increased number of outstanding shares raises the possibility of stock dilution. As the current share price is higher than the conversion price, the potential for profit-taking through the sale of converted shares should be considered.

3. What’s Next?: Short-Term and Long-Term Outlook

In the short term, there is a possibility of increased stock price volatility or a slight decline due to profit-taking. In the long term, AST’s fundamental improvement trend and the success of its business expansion strategy will have a greater impact on the stock price. While the company showed a turnaround in Q1 2025 and has secured a solid backlog of orders, high debt and accumulated deficit remain risk factors.

4. Investor Action Plan: Proceed with Caution

• Short-term investors should proceed with caution, considering the potential for profit-taking.
• Long-term investors should carefully analyze AST’s ability to maintain its improved fundamentals and the likelihood of success for its business strategies before making investment decisions.