The secondary battery material company Fino faced concerns about a large-scale 'overhang' on the 18th, causing its stock price to turn downward in after-hours transactions.
Fino's stock traded at 4,610 won in after-hours transactions, following the regular market closing at 4:20 p.m. It decreased by 2.02% (95 won) compared to the regular market closing price of 4,705 won.
Fino rose 7.3% (320 won) during the regular session. This increase was thanks to expectations that the U.S. would impose anti-dumping tariffs on Chinese graphite and that China would limit excess production related to secondary batteries, creating a favorable environment for the domestic secondary battery sector.
However, after the end of the regular session, the mood shifted with the announcement of the exercise of conversion claims. Investors of the third convertible bond (CB) issued by Fino last July decided to convert the CB into common shares. The total number of shares to be converted is 45,214,521 shares, which is approximately 198.11% of the existing issued shares. This means that when the new shares are listed on August 6, the total number of shares issued by Fino will increase nearly threefold compared to the existing amount. As the number of common shares increases, the value of the stocks is diluted, leading to a decline in stock price.
From the perspective of CB investors, given the current stock price, there is a possibility of large-scale sales due to the significant profit margin. The conversion price of the CB is 1,515 won per share. Based on this, a simple calculation indicates a return rate of 210% compared to the regular market closing price that day and about 204% in relation to the current after-hours transaction price.