Deokseong Decides to Dispose of 9.6% Treasury Stock: What Happened?
On September 22, 2025, Deokseong decided to dispose of 1,505,830 common shares (9.6% of total outstanding shares, approximately KRW 9.8 billion). The purpose of the disposal is to issue exchangeable bonds with treasury stock as the exchange target.
Why the Treasury Stock Disposal?
The main purpose of this treasury stock disposal is to raise funds through the issuance of exchangeable bonds. Issuing exchangeable bonds generally has the advantages of lowering interest burdens or providing flexible maturity structures. Deokseong is expected to utilize the secured funds for improving financial structure, business expansion, and R&D investment.
How Will This Impact the Stock Price?
- Positive Impact: Expected increase in corporate value through improved financial structure and securing growth momentum. Deokseong’s sales and operating profit in the first half of 2025 increased by 32.7% and 39.3% year-on-year, respectively, showing robust growth. This positive fundamental, combined with the potential for further growth through fundraising, can be expected to create a synergistic effect.
- Negative Impact: Potential stock dilution due to the increase in the number of outstanding shares. However, the impact may be limited depending on the conversion conditions of the exchangeable bonds and market conditions.
Investor Action Plan
Frequently Asked Questions (FAQ)
What is the purpose of Deokseong’s treasury stock disposal?
To raise funds through the issuance of exchangeable bonds. The secured funds will be used for improving financial structure, business expansion, and R&D investment.
Does treasury stock disposal negatively affect the stock price?
There is a possibility of stock dilution due to the increase in the number of outstanding shares, but the impact may be limited depending on the conversion conditions of the exchangeable bonds and market conditions. Corporate growth through fundraising may positively affect the stock price.
What are the key points to consider when investing?
Consider the detailed conditions of the exchangeable bonds, Deokseong’s future performance and financial soundness, and changes in the macroeconomic environment.
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