1. Jasco Holdings Convertible Bond Exercise: What’s Happening?
Jasco Holdings will issue 1,509,432 new shares due to the exercise of convertible bonds. This represents approximately 1.79% of the current market capitalization. The new shares are scheduled to be listed on September 5, 2025.
2. Why Does It Matter?
This CB exercise can lead to a dilution effect for existing shareholders. Also, because the conversion price (KRW 1,325) is lower than the current stock price (KRW 1,715), there is a high probability of profit-taking after the conversion, which could put downward pressure on the stock price. Given the company’s weak financial condition and poor operating results, the issuance of new shares could negatively impact investor sentiment.
3. So, What Will Happen to the Stock Price?
In the short term, the stock price is likely to be negatively affected. The dilution effect, the potential for profit-taking, and the company’s unstable financial situation can dampen investor sentiment. However, the long-term stock price trend will depend on the company’s fundamental improvements, new business performance, and changes in the macroeconomic environment.
4. What Should Investors Do?
Investors should carefully evaluate the company’s long-term growth potential rather than reacting emotionally to short-term stock price fluctuations. It is crucial to closely monitor the company’s efforts to improve its financial structure, the actual results of its new businesses, and other relevant factors before making investment decisions.