This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:25 p.m. on Aug. 3, 2026.
Sungho Electronics, which is expanding its business into artificial intelligence (AI) by acquiring semiconductor equipment maker ADS Tech, has moved to raise new funds. Aiming to repay funds raised while pushing to make ADS Tech a wholly owned subsidiary, it decided to issue 100 billion won in convertible bonds (CB).
According to the investment banking (IB) industry on the 3rd, Sungho Electronics(043260) recently decided to issue privately placed CBs and began full-fledged contact with institutional investors, including major domestic private equity fund (PEF) managers. The issuance size is about 100 billion won, and NH Investment & Securities and Kiwoom Securities are understood to be the offering arrangers.
The funding structure was designed to favor the issuer, Sungho Electronics. Both the coupon and yield to maturity were reportedly set at 0% for a three-year term. It was also said there would be no refixing, which lowers the conversion price to increase the number of conversion shares and mitigate investor losses if the stock price falls.
The funds raised are expected to be used by Sungho Electronics to repay money received from the largest shareholder, Seoryong Electronics, during the process of making ADS Tech a wholly owned subsidiary. Earlier, Sungho Electronics acquired 87.5% equity in ADS Tech for 280 billion won, then borrowed 154.8 billion won in April to buy the remaining equity.
Because the acquisition financing had to be repaid first to proceed with the additional equity purchase, Seoryong Electronics at the time raised funds through a stock-backed loan and provided lending to Sungho Electronics. As concerns over forced selling grew amid stock market volatility, Sungho Electronics is understood to have set a plan to issue CBs and repay the funds.
Investor interest is said to be strong. That is because Sungho Electronics, which once struggled as a specialist in making film capacitors, components used in liquid-crystal display (LCD) TVs, has recently expanded rapidly into the AI industry by bringing semiconductor equipment corporations as well as Fintech corporations under its wing.
ADS Tech in particular is regarded as a core subsidiary of Sungho Electronics. As a manufacturer of optical transceiver equipment used in AI data centers, the company was recently selected as a supplier of equipment for "co-packaged optics (CPO)," cited as a core technology for Nvidia's next-generation AI data centers.
A Sungho Electronics official said, "We have repaid a significant portion of the funds borrowed from Seoryong Electronics to repay the acquisition financing, and the current balance is about 95 billion won," adding, "With the funds raised from the CB issuance, we plan to repay as quickly as possible the lending for remaining acquisition financing to dispel market concerns about forced selling."