Alteogen is set to issue redeemable convertible preferred stock (RCPS) worth 155 billion won through a third-party allocation method, and the stock price is on the rise in after-hours trading following the market close on the 4th. It seems there are many investors who view the RCPS conditions positively.
RCPS are preferred shares granted the right to receive principal and interest like bonds within a specified period or to convert to common stock, depending on investor choice.
On the same day, Alteogen's stock was traded at 389,500 won in after-hours transactions at 5:30 p.m., a 4.14% (15,500 won) increase from the regular market closing price of 374,000 won.
Alteogen announced the issuance of the RCPS after the market closed on the same day. The plan involves issuing 434,848 shares at 356,433 won per share. NH Investment & Securities, DB Financial Investment, Kiwoom Securities, LS Securities, Hanyang Securities, BNK Investment Securities, and Mirae Asset Securities, among others, have decided to underwrite the RCPS.
Unlike the sharp drop in November when it was revealed that Alteogen was considering issuing RCPS, the rise in after-hours trading on this day can be attributed to three main reasons.
First, while the conversion price for RCPS is typically discounted compared to the regular reference stock price, this Alteogen RCPS was issued with a premium of 2.31%. This indicates that institutional investors who acquired the RCPS assessed it positively. The conversion price was determined to be 356,433 won by applying the premium rate to the weighted average prices over the past month, week, and as of the reference date.
A source in the financial investment industry said, "Considering that the conversion rights to turn RCPS into stock can be exercised after February 2026, it is believed that the stock price will likely be higher than the reference price in a year."
Additionally, the interest rate for this Alteogen RCPS was capped at 1% per annum (compound). The priority dividend rate for the RCPS was also set low at 1% of the par value (500 won). This serves as further evidence that institutional investors positively evaluated the Alteogen RCPS investment.
Alteogen plans to use 100 billion won of the funds raised through this RCPS for operational expenses and the remaining approximately 55 billion won for facility funds, which is also seen as a reason behind the rising stock price. Alteogen intends to use the funds for factory expansion and relocating its headquarters.