
What Happened?
DreamCIS has decided to issue ₩15 billion worth of convertible bonds. The conversion price is set at ₩3,847, with a payment date of September 30, 2025. Key investors include CCGI Life Growth Private Equity Fund and Hongkong Tigermed Co., Limited.
Why Issue Convertible Bonds?
DreamCIS plans to invest the proceeds in new businesses, including AI-based big data analytics and the pet industry. This strategic move aims to secure future growth engines and diversify the company’s business portfolio. Improving the financial structure and securing liquidity are also key objectives.
How Will This Impact the Stock Price?
- Positive Impacts:
- Strengthened growth momentum through new business investments
- Improved financial structure and secured liquidity
- Improved investor sentiment due to participation of major shareholders
- Negative/Concerns:
- Potential stock dilution upon conversion of convertible bonds
- Interest expense burden due to maturity interest rate (1.0% if not converted)
- Information asymmetry associated with private placement
What Should Investors Do?
This convertible bond issuance has the potential to enhance DreamCIS’s mid- to long-term growth prospects. However, investors should also consider the potential stock dilution from the issuance. Before making any investment decisions, carefully consider the performance of new businesses, market conditions, and stock price volatility.
Frequently Asked Questions
What are convertible bonds?
Convertible bonds are a type of debt security that gives the bondholder the option to convert the bond into a predetermined number of shares of the issuer’s common stock.
What is DreamCIS’s main business?
DreamCIS’s primary business is Contract Research Organization (CRO) and medical consulting. They are expanding into AI-based big data analytics and the pet industry.
Can issuing convertible bonds negatively impact the stock price?
Yes, when convertible bonds are converted into shares, the number of outstanding shares increases, potentially diluting the value of existing shares. This can negatively affect the stock price.
How will the funds from this convertible bond issuance be used?
The funds will be used for investments in new businesses, including AI-based big data analytics and entry into the pet industry.

