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