[Market Focus] Amosense Surges on CB Cancellation Announcement and Soaring Share Price of U.S. Partner

As of 9:30 a.m. on July 25, the stock price of Amosense, an electronic components and materials company listed on the KOSDAQ, was up 29.95% from the previous day's closing price, trading at 8,460 won. This appears to be due to the announcement that the company would acquire and cancel a total of 15 billion won worth of convertible bonds (CBs), as well as news of a sharp rise in the share price of Bloom Energy, its U.S. partner in the solid oxide fuel cell (SOFC) sector for data centers.

On July 24, Amosense announced that it would acquire before maturity and cancel its second (5 billion won, issued in April last year) and third (10 billion won, issued in June last year) tranches of bearer, coupon, unsecured private convertible bonds. Earlier, on July 16, Amosense raised 10 billion won in new funds by issuing its fourth tranche of bearer, coupon, unsecured private convertible bonds. Typically, the issuance of convertible bonds is seen as a negative factor in the market, as it increases the potential supply of shares in the future. Conversely, a reduction in convertible bond volume is regarded as a positive development.

Amosense manufactures wireless charging shielding sheets, automotive and RF modules, and IoT devices. SOFC substrates have emerged as a future growth driver for the company. At the end of 2023, Amosense signed a business agreement with SKEcoPlant and Bloom Energy to localize SOFC components and establish a global supply chain, and has since been preparing to produce electrolyte substrates for SOFCs. With the generative AI boom expected to drive explosive growth in power-hungry data centers, SOFCs are gaining attention as an on-site power supply solution.

Bloom Energy is reportedly set to begin full-scale SOFC supply to American Electric Power (AEP), the largest power producer in the United States, starting this year. On July 24 (local time), Bloom Energy's share price closed at $33.06 on the New York Stock Exchange, up 22.95%.