Share Price Surges 60% in Just Over Two Months
on Stock Revaluation
Investors in the fourth convertible bond (CB) issuance of Aniplus are expected to record a return of over 50%. This is due to the company's share price rising by more than 60% in just over two months, driven by expectations for the box office success of the anime "Demon Slayer."
According to the Financial Supervisory Service's electronic disclosure system (DART) on July 16, Aniplus announced on July 14 that 7.5 billion KRW worth of its fourth CBs would be converted into shares. The conversion price is 3,636 KRW, and the total number of shares to be issued amounts to 2,062,706, which is equivalent to 4.21% of the company's total shares.
The listing date for the fourth CB shares is scheduled for July 31. As of the previous day, Aniplus shares closed at 5,700 KRW. If the current share price holds until the listing date, investors will achieve a return of approximately 54.84%. Aniplus shares began to rise rapidly in June. Compared to the closing price on May 30, the stock has increased by 60.78%.
The securities industry explains that the rise in Aniplus shares is due to both expectations for "Demon Slayer" and a revaluation of the company's stock. In a report on July 14, NH Investment & Securities analyst Sim Huisub stated, "Company-wide synergy is expected through various revenue models, along with the box office performance of the 'Demon Slayer' movie, which is scheduled to be released in Japan on July 18 and in Korea on August 22." He added, "Despite the recent rise in share price, the revaluation of the company's value is expected to continue."
Investors converting their CBs into shares this time will be well rewarded for their patience. Previous investors had already converted their bonds into shares before the share price increased.
Aniplus issued 25 billion KRW worth of its fourth CBs on April 20, 2023. Both the coupon and maturity interest rates are 0%. The conversion request period runs from April 21, 2024, to March 21, 2028. The purpose of the issuance was to acquire Animax Broadcasting Korea. After the CB issuance, Aniplus shares continued to decline. At the time of issuance, the share price was 4,255 KRW, but by December of last year, it had fallen to around 2,390 KRW. As a result, the conversion price also dropped to a minimum of 3,157 KRW.
In this context, on May 12 of this year, CB investors exercised conversion rights worth 10 billion KRW. The conversion price was 3,157 KRW, corresponding to 6.92% of the total shares. The listing date for these CBs was May 27. On May 27, Aniplus shares closed at 3,485 KRW. If these CB investors had sold their shares immediately on the listing date, they would have recorded a return of around 10%.
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