KOSDAQ-listed Zeus was weak in early trading on the 16th. Investor sentiment appeared to sour on news that it would issue exchange bonds backed by treasury shares.
As of 9:34 a.m. that day, Zeus was trading at 13,590 won, down 250 won (1.81%) from the previous session.
Zeus, a semiconductor, display equipment and robotics company, said after the close the previous day that it will issue the 3rd tranche of 8.5 billion won in bearer, coupon, unsecured private exchange bonds. There is no coupon rate or yield to maturity, and the bond matures on Dec. 23, 2030.
An exchange bond is a bond that carries the right to exchange it for treasury shares or another company's stock held by the issuer. When exchange bonds are issued using treasury shares, those nonvoting treasury shares are transferred to a third party and voting rights are revived, producing an effect similar to issuing new shares.
The exchange bond will be issued to Mirae Asset Securities, BOOKOOK Securities, KB Securities, Samsung Securities and others. The company plans to use the proceeds as working capital, including to advance its industrial robotics technology.