[Featured Stock] Plutos Surges 20% After Convertible Bond Refixing Completion
Conversion Price Rises After Downward Adjustment... Surpasses 600 Won Intraday
Refixing Uncertainty Resolved, Signs of Improved Investor Sentiment
Financial Stability Expected with Convertible Bond Funds
Plutos surged over 20%. The price has been rising since the completion of the convertible bond (CB) conversion price adjustment (refixing).
As of 9:35 a.m. on the 4th, Plutos is trading at 584 won, up 20.41% (99 won) from the previous day. It recorded an intraday high of 624 won (28.66%) before undergoing a correction. This is the first time Plutos' stock price has exceeded 600 won since June.
On the previous day, Plutos announced the refixing of the 18th, 19th, and 20th series of CBs. The conversion price was uniformly lowered from 611 won to the minimum limit (par value) of 500 won. Value Up Impact Investment Association, the venture capital (VC) and largest shareholder of Plutos, initiated a paid-in capital increase and CB issuance worth over 40 billion won this year to stabilize Plutos' finances amid funding difficulties. The CBs were issued in a total of 20 series.
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Refixing refers to adjusting the conversion price linked to the stock price periodically to protect the interests of CB investors. Due to a significant drop in the stock price compared to the beginning of the year, the conversion price was adjusted downward. In such cases, the volume of shares converted increases, which can be disadvantageous to minority shareholders. However, after the announcement of the downward adjustment of the conversion price for all 20 series of CBs was completed, Plutos' stock price has surged. This is interpreted as uncertainty being resolved, which in turn stimulated investor sentiment.
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