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KMW CO. LTD. KRW 35.0 billion private convertible bond issue at KRW 18,140 conversion price

KMW CO. LTD.· Material Event Report
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AI summary · Not investment advice

KMW CO. LTD. will issue KRW 35.0 billion of private convertible bonds. The conversion price is KRW 18,140, and full conversion would create 1,929,437 new shares, 4.37% of total shares.

Total face value

KRW 35.0 billion

4.37% of total shares · 4.70% including outstanding bonds

Key facts

Working capital
KRW 20.0 billionOperations and raw materials KRW 10.0 billion · telecom equipment R&D KRW 10.0 billion
Capital expenditure
KRW 15.0 billionEquipment investment for the telecom equipment business (2027-2029)
% of total shares
4.37%
Conversion price per share
KRW 18,140
Convertible shares
1,929,437 shares
Conversion period
Oct 26, 2027 – Sep 26, 2031
Coupon rate
0.0%
Bond type
11th unregistered, non-interest-coupon, unsecured private convertible bonds
Yield to maturity
0.0%
Maturity date
Oct 26, 2031100.0000% of principal repaid at maturity
Call option limit
30% of each subscriber's initial face valueExercisable 2027.10.26 ~ 2029.09.26; capped by regulation if the largest shareholder group acquires
First put date
Oct 26, 2029Every 3 months thereafter
Payment date
Oct 26, 2026Cash
Board resolution date
Oct 16, 2026

Commentary

AI commentary · Not investment advice

What happened

KMW will issue KRW 35.0 billion of convertible bonds (bonds that can later be turned into shares). The bonds are sold privately to 18 securities firms, funds and partnerships. The interest rate is 0.0%, and each bond converts at KRW 18,140 per share. Of the money raised, KRW 15.0 billion goes to telecom equipment facilities and KRW 20.0 billion to working capital. Working capital is split into KRW 10.0 billion for operations and raw materials and KRW 10.0 billion for telecom equipment R&D.

In the company's terms

Full conversion would create 1,929,437 new shares, or 4.37% of total shares. Including the remaining 10th convertible bonds (51,557 shares), the total is 1,980,994 shares, or 4.70% of the 42,191,701 shares outstanding. The remaining issuance limit under the articles is KRW 45.0 billion.

What changes for shareholders

Conversion can be requested from October 26, 2027. Bondholders can ask for early repayment every three months from October 26, 2029 (a put option). The company or its designee can acquire bonds back from October 26, 2027 to September 26, 2029 (a call option), up to 30% of each subscriber's initial amount. The bonds mature on October 26, 2031.

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