1. What is NEXEN’s Treasury Stock Disposal?

NEXEN decided to dispose of 3,063,100 treasury shares on September 22, 2025. This is for the issuance of exchangeable bonds, and is expected to raise approximately 23.5 billion KRW.

2. Why is NEXEN Disposing of Treasury Stock?

NEXEN plans to use the funds raised through this treasury stock disposal for investments in securing future growth engines. This aligns with the growth strategies outlined in the 2025 semi-annual report, such as strengthening the global competitiveness of NEXEN Tire and investing in new technology businesses. The decision to issue exchangeable bonds is likely due to its lower impact on the financial structure compared to issuing new shares or borrowing.

3. How Will the Disposal Impact the Stock Price?

In the short term, the stock price may experience increased volatility due to the coexistence of positive signals (investment fund secured) and negative signals (potential equity dilution). In the long term, the stock’s direction will depend on how efficiently the raised funds are used and whether they generate tangible results. Successful investments are expected to positively impact the stock price by increasing the company’s value.

4. What Should Investors Do?

  • Growth potential: Analyze NEXEN’s growth strategy and investment plans to assess the likelihood of success.
  • Equity dilution: Consider the possibility of exchangeable bonds converting into common stock and the resulting dilution effect.
  • Macroeconomic environment: Analyze the impact of macroeconomic variables such as exchange rates and interest rates on NEXEN’s business.
  • Market reaction: Continuously monitor the terms of the exchangeable bond issuance and the market’s reaction.