APACT Issues 23.4 Billion KRW in Bonds with Warrants for Semiconductor Facility Investment

APACT, a company specializing in semiconductor back-end processes, announced on November 20 that it will issue bonds with warrants (BW) worth 23.4 billion KRW. The funds raised will be allocated 17.5 billion KRW for facility investment and 5.9 billion KRW for working capital, respectively.

This BW will be acquired by a total of 16 institutions, including GVA Asset Management. The payment deadline is November 27. The coupon rate is 0.0% per annum, and the guaranteed yield to maturity is set at an annual compound rate of 1.0% in three-month intervals.

Of the 17.5 billion KRW allocated for facility investment, 8.5 billion KRW will be used to expand production capacity in response to increased package (PKG) volume and new product orders. Additionally, 4 billion KRW will be invested in building test infrastructure for the new product SOCAMM2, while 5 billion KRW will be used to establish electrical and other infrastructure for LPDDR5 testing, in line with future growth in the AI accelerator market. The company has decided to repurpose its Eumseong plant, which was previously being considered for sale, to respond to SOCAMM2, and is currently carrying out related facility renovations.

APACT plans to strengthen its responsiveness to new products and lay the foundation for sales growth through this infrastructure investment. The company stated, "By establishing new test lines, we will enhance our responsiveness to client companies and continue the improvement trend that began with the turnaround to operating profit in the second quarter." It added, "Expanding production infrastructure will increase customer trust and have a positive effect on securing additional orders in the future."

Meanwhile, APACT recorded consolidated sales of 28.3 billion KRW and operating profit of 1.9 billion KRW in the third quarter of this year, with sales growing by more than 25% compared to the same period last year. The company turned to an operating profit from a loss a year earlier. The company explained, "Increased memory shipments, centered on DRAM, are improving the performance of both the package and test business units," and added, "The growing demand for DDR5 and LPDDR5 for AI accelerators, driven by the expansion of AI servers, will drive further growth in back-end process demand over the mid- to long-term."

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