1. FST’s ₩20 Billion Convertible Bond Issuance: What Happened?

On September 17, 2025, FST officially announced its decision to issue ₩20 billion worth of convertible bonds. Key details include:

  • Offering Type: Private Placement
  • Conversion Price: ₩32,413 (significantly higher than the current market price of ₩2,196)
  • Payment Date: September 25, 2025
  • Conversion Start Date: October 2, 2025
  • Conversion End Date: August 25, 2030
  • Lead Investor: Korea Investment Global Semitech New Technology Business Investment Association

2. Why the Convertible Bond Issuance?: Background and Implications

The bond issuance is primarily aimed at securing funds for R&D investments in key growth areas, including EUV pellicles and next-generation chillers. This move aligns with the growth trajectory of the semiconductor market and FST’s need for business expansion.

3. Impact on Investors: Opportunities and Risks

Positive Aspects:

  • ✔ Securing funds for future growth drivers
  • ✔ Potential for long-term improvement in financial structure through stock conversion

Negative Aspects:

  • ❌ High conversion price relative to current market price puts pressure on stock price appreciation
  • ❌ Potential burden of bond repayment if stock price fails to reach conversion price
  • ❌ Potential dilution of shareholder value

4. Investment Strategy: What Should Investors Do?

This convertible bond offering can have complex short-term and long-term implications. Investors should carefully monitor the following factors before making investment decisions:

  • 👉 Actual conversion rate of convertible bonds and stock price trends
  • 👉 FST’s R&D investment performance and new business outcomes
  • 👉 Semiconductor market conditions and macroeconomic indicators