Finger Decides on ₩10.0B Private Convertible Bond Issue

What happened

On 2026-10-27 Finger filed a decision to issue its 10th-series unsecured private convertible bond with a face value of ₩10.0B. The stated use of proceeds is acquiring securities of other companies, for the full ₩10.0B.

The bond carries a 0.0% coupon but a 7.0% yield at maturity. At maturity on 2029-11-12, holders not converting would be repaid 122.5043% of face value. The initial conversion price is ₩12,193 per share, with a floor of ₩11,904, and the price can be adjusted downward under certain conditions, such as share issues below market value.

Full conversion would create 820,142 new common shares, equal to 6.04% of the existing share count. Conversion can be requested from 2027-11-12 to 2029-11-11. The filing shows remaining authorized issuance room of ₩455.0B under the articles of incorporation. An amended version of the filing was also posted the same day; its changes are not available to us.

Recent filings also show a rights offering decision and several acquisitions of shares in other companies in October and late September.

What it changes for the thesis

The previous report described a small software company with recovered revenue (about ₩92.2B trailing) but thin profitability (operating margin 0.8%), and it flagged financing and acquisition activity as the key items to follow. This filing adds to that pattern: the money is earmarked for buying stakes in other companies, whose returns are not yet visible in the numbers.

The thesis is not changed, but the financing picture is getting heavier. Trailing cash is ₩108.0B against borrowings of ₩62.5B, so the balance sheet is not strained. Still, the filings do not say what is being acquired or what profit it could add. Foreign ownership has also fallen from 7.5% sixty days ago to 2.6%, and foreign investors have net sold about ₩1.0B over the last 20 days while retail investors bought about ₩1.5B.

What it changes for the valuation

Our model estimate is now a base of ₩5,119 per share, with a bear case of ₩3,530 and a bull case of ₩7,754, using a 9.0% discount rate. The previous report had ₩5,103 base, ₩3,526 bear and ₩7,712 bull. The small change reflects the rate and updated inputs, not this bond. The model does not include the new bond's dilution or any acquisition benefits. This is a model estimate based on the assumptions shown, not a target.

The share price closed at ₩12,000 on 2026-10-27, above even the bull case. It is down 5.1% over one month but up 63.5% over three months. The conversion price of ₩12,193 is close to the current price. Market capitalization is ₩153.2B, trailing P/E is 25.5 and P/B is 1.6.

Closing view

The evidence is mixed, and the new filing mostly reinforces what the previous report flagged. The bond is modest in size, with potential dilution of 6.0%, and it is priced near the market. Its purpose is acquisitions, with no earnings contribution disclosed yet. The model estimate is essentially unchanged and remains far below the share price, so the market appears to be assuming much better results than the trailing data show. This note offers no recommendation; the details of the acquisitions and the rights offering are the main items to watch.

Model estimate of fair value

Bear

₩3,530

-71%

Base

₩5,119

-58%

Bull

₩7,754

-36%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 9%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Convertible bond issue decisionOct 27, 2026
• Amended: Convertible bond issue decisionOct 27, 2026
• Amended: Acquisition of shares in another companyOct 21, 2026
• Amended: 5%+ holding reportOct 19, 2026
• Acquisition of shares in another companyOct 6, 2026
• Acquisition of shares in another companyOct 1, 2026
• Rights offering (paid-in capital increase) decisionOct 1, 2026
• Acquisition of shares in another companyOct 1, 2026
• Securities Issuance Results (Voluntary Disclosure)Oct 1, 2026
• Decision on Loan ExtensionSep 30, 2026
• Amended: Acquisition of shares in another companySep 30, 2026
• Amended attachment: Convertible bond issue decisionSep 28, 2026
• Daily prices up to 2026-10-27
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 28, 2026Update noteNew shares / dilutionFinger Decides on ₩10.0B Private Convertible Bond Issue
2. Oct 21, 2026InitiationStart of coverage (reader request)Finger: Sharp Three-Month Rally Meets Thin Profits and Heavy Financing Activity