Seoul Auction Issues 12.5 Billion Won Convertible Bonds for "Global Business Expansion"

Seoul Auction Issued Shares at 4.23% Scale

Art auction house Seoul Auction announced on the 27th that it will issue exchangeable bonds (EB) worth 12.5 billion KRW to 'Pectus-IBKC New Technology Investment Fund No. 1' to expand its overseas business and raise operating funds.

Seoul Auction Gangnam Office
Photo by Seoul Auction

The exchange target is 751,201 shares of Seoul Auction's treasury stock, accounting for 4.23% of Seoul Auction's issued shares. Exchangeable bonds are bonds that give investors the right to exchange the bonds they hold for shares of another company held by the issuer after a certain period.

Seoul Auction stated that not only domestic financial institutions but also strategic investors (SI) from the Chinese-speaking region participated in this investment, explaining, "Among the Chinese-speaking SIs participating in the investment, there are many owners of listed companies as well as entities engaged in art and cultural businesses in the Chinese-speaking region."

Seoul Auction plans to use the funds secured through this investment to expand its business in Hong Kong and support Korean artists' entry into the global market. Additionally, benchmarking global auction companies, it aims to expand categories into 'luxury' items such as wine and watches, while also promoting the expansion of its art-backed loan business.

Seoul Auction plans to hold a local auction in Hong Kong for the first time since the COVID-19 pandemic in the second half of this year.

A Seoul Auction official stated, "Since many of the investing institutions are engaged in art and cultural businesses in the Chinese-speaking region, we will strive to enable prominent domestic artists and their works to be more active on the global stage together with them."

A representative from Pectus PE said, "Following K-pop and K-drama, we believe K-art has sufficient potential, and we will actively pursue collaboration and investment discussions with global strategic investors."

This content was produced with the assistance of AI translation services.