What Happened?
AST will convert 4 million convertible bonds into common stock. The conversion price is 500 KRW, lower than the current stock price (686 KRW), making the exercise profitable. The converted shares represent 1.01% of the market capitalization.
Why Does This Matter?
In the short term, the increase in outstanding shares could put downward pressure on the stock price. In the long term, a decrease in debt is expected, but the impact might be limited.
What’s the Likely Outcome?
Short-term Impact:
- Potential stock price decline due to increased outstanding shares
- Expected increase in trading volume and volatility
Long-term Impact:
- Debt reduction and improvement in financial structure (limited)
- Potential increase in investor confidence
What Should Investors Do?
- Closely monitor stock price fluctuations immediately after the event
- Continuously observe AST’s financial strengthening strategies, raw material price trends, and global economic conditions
- Check the status of contracts with major clients such as Boeing and Embraer, and risk management strategies related to raw material price fluctuations
AST Fundamentals and Risk Factors
AST achieved sales growth and returned to profitability in Q3 2025, but risk factors such as high debt ratio, external environment uncertainty, and past workout experience still exist.
FAQ
How will the convertible bond exercise affect AST’s stock price?
In the short term, it may put downward pressure on the stock price, but in the long term, it can have a positive impact by reducing debt. However, the effect may be limited, and uncertainties in the external environment should be considered.
What is AST’s financial status?
While AST achieved sales growth and returned to profitability in Q3 2025, the high debt ratio remains a risk factor. Although the convertible bond exercise will reduce some debt, continuous efforts to strengthen capital are necessary.
What should investors be aware of?
Investors should continuously monitor stock price fluctuations after the convertible bond exercise, AST’s financial strengthening strategies, raw material prices and global economic trends, and the status of contracts with major clients.