DELTA says parent to issue $1.5 billion exchangeable bonds, using 172 million existing shares

Corporate ActionAnalyst
โดย Prachachat·THSG·Read original
Summary · why it matters

Delta Electronics (Thailand), or DELTA, informed the Stock Exchange of Thailand that it has been notified by Delta Electronics Int'l (Singapore) Pte. Ltd., a shareholder and subsidiary of Delta Electronics Inc., of a plan to issue and offer zero-coupon exchangeable bonds overseas with a total value of $1.5 billion, on or about September 21, 2026. The offering comprises $500 million of one-year bonds maturing on September 21, 2027, and $1 billion of five-year bonds maturing on September 21, 2031, to increase working capital and support future business expansion. Both tranches are exchangeable into DELTA shares already held by Delta Electronics Int'l (Singapore). The one-year bonds have an initial exchange price of 266.80 baht per share, 15% above the reference price, while the five-year bonds are set at 301.60 baht per share, 30% above the reference price. If the exchange rights are fully exercised at the initial prices, they would use approximately 172.09 million existing DELTA shares, or about 1.38% of the company's total issued shares as of the bond issuance date. Kasikorn Securities views this as negative sentiment for the share price in the short term. Although fundamentals are unaffected because there is no dilution, the market may interpret it as the parent wanting to sell shares. Compared with the previous exchangeable bond issuance in January 2025 worth $525 million, DELTA's share price fell about 5-6% after the announcement. Kasikorn Securities maintains a buy recommendation with a target price of 300 baht. Meanwhile, the research team at Asia Plus Securities also sees concerns about share overhang, noting the new issue size has increased to $1.5 billion, or about 2.86 times the previous round, and the exchange premium is lower than the previous round's 40%. In the previous round, the share price fell about 6% intraday and declined a cumulative 14.4% within three trading days.

Impact on stocks 4

Financials▲ · 2 stocks
Electrification & Mobility▼ · 1 stocks
Robotics & Physical AI▲ · 1 stocks
Delta Electronics Inc
2308
± MixedCapitalrelevance

Delta Electronics Inc's subsidiary is issuing the exchangeable bonds to raise working capital and fund expansion, but the article focuses on the impact on DELTA Thailand

© 2026 MarketDXNews