Korea Stock Market Insights

Tag: Bonds with Warrants

AirRain Stock: Is How Asset Management’s 11.2% Stake a Buying Opportunity?
How Asset Management Bets on AirRain!

On August 25, 2025, How Asset Management acquired 11.2% of AirRain’s shares, drawing attention from investors. Although disclosed as a simple investment, what does this move truly signify? Let’s analyze AirRain’s hidden investment value and future stock prospects.
1. What Happened?

How Asset Management acquired 11.20% of AirRain’s shares through Convertible Bonds (CB) and Bonds with Warrants (BW). Although stated as a simple investment, the market interprets this as a positive signal for AirRain’s growth potential.

2. Why Should You Pay Attention?

AirRain possesses a robust business portfolio, including nitrogen generation modules, nitrogen generation devices for hydrogen charging stations, and biogas upgrading projects. In particular, the Carbon Capture, Utilization, and Storage (CCUS) project is attracting attention as a future growth driver following successful demonstration with Lotte Chemical. As of the first half of 2025, AirRain achieved sales of KRW 14.88 billion and operating profit of KRW 2.25 billion, maintaining solid growth. The debt ratio also decreased significantly to 24%.

3. What’s Next?

How Asset Management’s investment is expected to enhance market confidence in AirRain and improve investor sentiment. It’s likely to become a short-term stock price catalyst, and in the mid-to-long term, there’s further upside potential alongside the growth of the CCUS business. However, the possibility of stock dilution due to CB/BW conversion should be noted.

4. Investor Action Plan
- Maintain a Positive Outlook: Considering AirRain’s growth and investment momentum, maintain a positive investment outlook.
- Monitor Stock Price and Related Information: Continuously monitor short-term stock price volatility, How Asset Management’s further actions, and information related to CB/BW conversion.
- Watch Exchange Rate Fluctuations: Given the high proportion of overseas sales, monitor exchange rate trends and analyze their impact on performance.
FAQ

Why is How Asset Management’s investment in AirRain significant?

How Asset Management’s investment is a significant signal of market confidence in AirRain’s growth potential. It can act as both a short-term catalyst for stock price increase and a factor that elevates long-term investment value.

What are AirRain’s key growth drivers?

AirRain operates various businesses including nitrogen generation modules, nitrogen generation devices for hydrogen stations, and biogas upgrading. The Carbon Capture, Utilization, and Storage (CCUS) project is attracting significant attention as a future growth driver.

What are the key considerations when investing in AirRain?

Investors should consider the potential stock dilution from future CB/BW conversion and performance volatility due to exchange rate fluctuations. All investment decisions should be made at the investor’s own discretion and responsibility.
08/25/2025
T’way Air Issues ₩50 Billion BW: Opportunity or Risk? Key Analysis and Investment Strategies
T’way Air’s ₩50 Billion BW Issuance: Opportunity or Threat?

T’way Air has decided to issue ₩50 billion worth of bonds with warrants (BW). This move is interpreted as a strategy to improve financial structure and secure growth momentum through funding. However, there are also risks such as potential stock dilution and increased interest burden. This article analyzes the background and implications of T’way Air’s BW issuance, its potential impact, and key points investors should focus on to help them develop investment strategies.
1. T’way Air’s BW Issuance: What Happened?

T’way Air will issue ₩50 billion worth of BW through private placement. These funds are planned to be used for securing operating funds and introducing new aircraft. The exercise price of the BW is ₩1,954, the coupon rate and maturity rate are 5.50%, and the payment date is August 21, 2025. The exercise period is from August 22, 2026, to July 21, 2025.

2. Why the BW Issuance?

Although T’way Air is showing sales growth due to the recovery of international passenger demand, operating losses are expanding due to increased fuel and operating costs, as well as fixed cost burdens from the introduction of new aircraft. The high debt ratio (4,353%) also acts as a financial burden. Therefore, it is analyzed that the BW issuance aims to improve the financial structure and secure investment funds for future growth.

3. The Impact of the BW Issuance
- Positive Impacts: Improved financial soundness, securing operating and investment funds, potential capital increase effect upon future stock price increase.
- Negative Impacts: Potential for stock dilution, interest payment burden of 5.50% per annum, increased stock price volatility, repayment burden at maturity.
The current recovery trend in travel demand is a positive factor, but exchange rate and oil price volatility remain risk factors. Interest rate conditions can affect the interest burden at the time of BW issuance.

4. What Should Investors Do?

Investors should consider both the positive and negative aspects of the BW issuance. It is important to make investment decisions by carefully monitoring T’way Air’s earnings improvement, BW conversion trends, and the outlook for the airline industry. In particular, attention should be paid to improvements in operating efficiency and profitability following the introduction of new aircraft.
Frequently Asked Questions

What are Bonds with Warrants (BW)?

BWs are securities that combine bonds and warrants. Investors can receive interest like bonds, and at the same time, have the right (warrant) to buy the issuer’s shares at a predetermined price (exercise price) within a certain period.

How will T’way Air’s BW issuance affect its stock price?

The BW issuance can have both positive and negative impacts on the stock price in the short term. Immediately after the issuance, the stock price may rise on the news of fundraising, but in the long term, the stock price may fall due to the potential for stock dilution from the exercise of the BW.

Should I invest in T’way Air?

Investment decisions should be made based on your own judgment. It is important to make careful investment decisions by comprehensively considering T’way Air’s financial situation, earnings outlook, and airline industry trends.
08/08/2025
Adbiotech Stock Analysis: Decoding the “No Material Information” Announcement
Adbiotech: “No Material Information,” But More Questions Than Answers?

Adbiotech’s July 28th response of “no material information” to a regulatory inquiry was quickly followed by announcements of corrections and financing plans, leaving investors puzzled. Is this a simple procedural matter, or is there something more to the story? This article analyzes Adbiotech’s recent disclosures and highlights key takeaways for investors.
1. What Happened?

Adbiotech responded “no material information” to an inquiry regarding unusual stock market activity. However, they simultaneously disclosed corrections to previous filings and announced plans for convertible bonds, bonds with warrants, and a rights offering. This series of announcements created confusion among investors.

2. Why Did This Happen?

Adbiotech’s Q1 2025 results were disappointing, with declining revenue and a net loss. A high debt-to-equity ratio further fueled financial concerns. These factors likely necessitated the financing activities. The repeated corrections raise concerns about the company’s disclosure practices.

3. What Does This Mean for Investors?

Investors should focus on the following:
- The specific terms of the convertible bonds, bonds with warrants, and rights offering.
- The underlying causes of the weak Q1 2025 performance.
- The company’s financial health and future business plans.
Careful due diligence and consultation with financial professionals are recommended.

4. Investor Action Plan

Be prepared for potential short-term volatility. For long-term investors, closely monitor the company’s fundamentals and the effectiveness of the financing activities. Stay informed about relevant disclosures and news, and seek professional advice if needed.
FAQ

What was Adbiotech’s response to the regulatory inquiry?

“No material information.”

How does Adbiotech plan to raise capital?

Through convertible bonds, bonds with warrants, and a rights offering.

How did Adbiotech perform in Q1 2025?

The company reported declining revenue and a net loss.

What should investors consider?

The terms of the financing, the reasons for the weak performance, and the company’s financial health.
07/28/2025