How do convertible bonds issued by a company preparing to list affect the listing review and the share price after listing?

The Korea Exchange reviews the possibility that conversion of convertible bonds, etc. issued by a listing applicant could change the largest shareholder, and whether the conversion period, conversion price and post-conversion volume could cause problems for investor protection after listing.

It advises that if the conversion request period begins within the span from the review application date to 6 months after preliminary review approval, the company should consider redeeming the bonds (excluding refinancing through new issuance) or applying for review after the conversion period expires, to prevent large-scale selling right after listing. Compliance with procedures such as the issuance limit in the articles of incorporation, whether the issuance amounted to a deemed public offering requiring a securities registration statement, and the appropriateness of the acquirers and the conversion price are also checked.