The share price of L&F, a company specializing in secondary battery cathode materials, is weak in early trading on the 28th. It is interpreted that risk aversion (hedge) demand has surged ahead of the issuance of 300 billion won worth of bonds with warrants.
L&F shares traded at 70,200 won on the KOSPI market at 10:01 a.m. on that day. The price fell by 11.7% (9,300 won) compared to the previous day. During the session, the stock price even dipped to 68,900 won.
Kim Cheol-jung, a researcher at Mirae Asset Securities, noted regarding the decline in L&F's stock price, "There is no particular fundamental reason, and I understand it as hedge demand aiming to secure revenue generated at a low price from the bonds with warrants."
L&F is in the process of issuing bonds with warrants with a maturity of five years to raise funds for its lithium iron phosphate (LFP) business. The exercise price of the warrants is set at 50,200 won, and they can be exercised starting from October 9.
For this issue of bonds with warrants, L&F will accept subscriptions from existing shareholders from September 1 to 2, and the remaining quantity will be offered to general investors.