1. What Happened at Surplus Global?
On September 23, 2025, Surplus Global announced the issuance of ₩6.5 billion in convertible bonds. The conversion price is set at ₩3,018, approximately 18.4% higher than the current stock price. Key investors include Korea Investment & Securities, Shinhan Investment Corp., and IBK Capital.
2. Why Issue Convertible Bonds?
Surplus Global’s performance in the first half of 2025 was weak. Sales decreased by 58.8% year-on-year, and both operating income and net income turned to losses. The high debt ratio and increasing inventory levels raise concerns about financial soundness. In this situation, issuing convertible bonds appears to be an inevitable choice to secure short-term working capital and raise funds for new business investments.
3. Convertible Bonds: Opportunity or Risk?
- Positive Aspects:
- Securing short-term liquidity.
- Potential for securing growth engines through investment in new businesses.
- Negative Aspects:
- Increased financial burden due to a higher debt ratio.
- Pressure on stock price due to the high conversion price compared to the current market price.
- Risk of future interest rate hikes and exchange rate fluctuations.
4. What Should Investors Do?
While the issuance of convertible bonds can provide a short-term cash injection, long-term growth cannot be guaranteed without fundamental improvements in business competitiveness. Investors should carefully monitor the following:
- Conversion of convertible bonds.
- Performance of new businesses (used semiconductor equipment cluster, global open market).
- Recovery trend of the semiconductor market.
- Future profitability improvement.
Currently, it is advisable to maintain a cautious wait-and-see approach and take a conservative perspective, considering the additional financial burden and the high conversion price.