Tess’s ₩28.5B Convertible Bond Offering – What Happened?
On September 17, 2025, Tess announced a ₩28.5 billion convertible bond offering. The coupon and maturity interest rate is 0%, and the conversion price is set at ₩47,527, significantly higher than the current stock price of ₩3,580.
Background and Purpose of the Offering – Why Now?
Tess is currently investing approximately ₩70 billion in expanding its R&D facilities. This convertible bond offering is analyzed as a way to secure funds for R&D investment, facility investment, operating funds, and improve its financial structure. The ability to raise funds at a low 0% interest rate is also a significant advantage.
Impact on Investors – What Does This Mean?
- Positive Aspects: Easier access to funds, reduced financial burden, improved financial structure, securing future growth engines
- Potential Negative/Cautionary Factors: Discrepancy between conversion price and current stock price, pressure on stock price appreciation, potential for equity dilution (low short-term concern), need to secure investor confidence
Investment Strategy – What Should Investors Do?
Investors should closely monitor the company’s plans for utilizing the raised funds, R&D investment performance, relationships with major clients, and diversification efforts. It is crucial to focus on Tess’s long-term growth potential rather than being swayed by short-term stock price fluctuations.
Frequently Asked Questions
What are convertible bonds?
Convertible bonds are bonds that give the holder the right to convert them into shares of the issuing company’s stock. Investors can receive interest payments until maturity or convert the bonds into stock within a specified period.
Will Tess’s convertible bond offering have a positive impact on its stock price?
Securing growth engines through fundraising is a positive factor. However, the high conversion price compared to the current stock price could put pressure on the stock price in the short term.
Should I invest in Tess?
Investment decisions are personal choices. Carefully consider the analysis provided in this article, along with Tess’s future business strategies and performance, before making an investment decision.
