Suseong Webtoon Major Shareholder Converts CB to Common Stock at 8,950 Won

Published 24 Dec.2024 09:05(KST)

Toomics Holdings, the largest shareholder of Suseong Webtoon, announced on the 24th that it will convert 6 billion KRW worth of the 24th series convertible bonds (CB) it holds into common stock.

The conversion price is 8,950 KRW, which is higher than the current stock price of 5,080 KRW. Typically, when the conversion price is higher than the stock price, conversion decisions are burdensome, making this an unusual case.

A representative of Suseong Webtoon stated, “Despite the conversion price being higher than the current stock price, Toomics Holdings made this decision because we believe that the largest shareholder and management of Suseong Webtoon have a firm commitment to the company’s financial stability and responsible management,” adding, “Through this measure, we aim to reduce the company’s debt ratio and further strengthen financial soundness to establish a foundation for long-term growth.”

As of early this year, Suseong Webtoon’s outstanding convertible bonds amounted to 65.8 billion KRW. Through continuous CB purchases and cancellations, it is expected that the outstanding CB balance will significantly decrease to 18 billion KRW by the end of January next year. Among the 18 billion KRW, 5 billion KRW of the 21st series has already been secured with cash collateral by the company. The company has repeatedly expressed its intention to repay immediately to CB investors. The convertible bond balance has decreased by approximately 72.6% compared to the beginning of 2024, which the company representative said is the result of management’s consistent efforts to improve the financial structure.

Continuous CB purchases and cancellations play a significant role in reducing the company’s financial risk and alleviating potential supply pressure in the stock market. Through these measures, Suseong Webtoon has established a more stable financial structure. This is expected to act as a positive signal to shareholders. Additionally, the reduction in convertible bond balances is anticipated to contribute to future stock price stability and enhancement of corporate value. As more CBs are canceled, the likelihood of conversion into shares decreases, alleviating concerns over dilution of existing shareholders’ equity.

Yoo Young-hak, CEO of Suseong Webtoon, said, “We will continue to pursue transparent and trustworthy management based on responsible leadership and strive for sustainable growth,” and added, “We aim to grow into a global webtoon platform trusted by both users and investors.”

Suseong Webtoon Major Shareholder Converts CB to Common Stock at 8,950 Won