Convertible Bond Conversion and Refixing Calculator

What does this convertible bond calculator compare?

A convertible bond gives its holder a contractual right to exchange debt for shares under specified conditions.
The same face principal can produce different share counts when the conversion price changes, while fractional settlement can change the resulting value.
This calculator applies original, current and candidate conversion prices to the same remaining principal and compares shares, fractions and the difference from cash redemption.

It is designed for investors and family members reviewing Korean KRW bonds using disclosed terms under the 2026 source context.
A larger share count does not establish that conversion is preferable.
Check the applicable conversion price, exercise window, redemption amount and when delivered shares can actually be sold.

Prepare the bond terms and account records

This tool assumes a single aggregate conversion of the remaining principal at one price.
If the contract rounds down separately for each certificate, account or request, combining the amounts can produce a different share count.
Calculate separately using the actual settlement unit and reconcile the results with the broker.
A filing alone does not establish that your account can exercise the right today.

Input meanings and units

• Total and converted principal: Both use whole KRW, and their difference is the balance being compared.
  If total principal already represents your current balance, enter zero for previously converted principal to avoid subtracting it twice.
  
• Conversion and market prices: The conversion price determines how much face principal becomes one share.
  The assumed market price values that share on the comparison date.
  A market-price change does not automatically become an identical conversion-price change.
  
• Contractual floor and ceiling: Enter absolute prices verified in the applicable filing.
  A blank means unknown, not a zero-price limit.
  Capital adjustments can make a verified ceiling differ from the original conversion price.
  
• Currently issued shares: Include shares already issued through earlier conversions.
  This optional input supports a partial dilution reference; leave it blank when unverified.
  

Principal, prices and share counts use integers; the redemption rate accepts up to four decimal places.
Draft input preserves editing and comma-separated numbers.
The calculator rejects invalid dates, converted principal above total principal, a ceiling below the floor, unsupported precision and values whose resulting valuation exceeds the supported numerical range.

Share-count and fractional-share formulas

Only whole shares are counted as newly issued shares.
Integer division and remainder calculations avoid losing one share through floating-point error at an exact boundary.
The remaining principal is accounted for by the face amount converted into whole shares plus the residual face amount.
Previously received shares are a memo and are not added to this new share count.

Why the refixing floor is not automatically set to 70%

Article 5-23 of Korea’s Regulations on Securities Issuance and Disclosure addresses downward adjustments for listed issuers, including adjustment grounds, dates and methods.
For market-price declines, the rules include a 70% reference to the issuance price adjusted for relevant capital events, a calculated market-price basis and an exception established through a specific special shareholder resolution for the issuance.
Multiplying the original input price by one percentage cannot establish a universally permitted price.

A candidate below the floor or above the ceiling is not silently replaced with another price.
The hypothetical arithmetic stays visible with a conflict notice.
Even a candidate within entered limits still requires confirmation of the adjustment date, market-price calculation, shareholder resolution, transitional provisions and contractual applicability.
The original-price row is a reference calculation, not a claim that historical terms remain exercisable.

Compare conversion and cash redemption on one date

A 105% redemption rate includes 100% of principal and the premium.
Do not add interest already included in that rate again as separate interest.
Enter conversion interest only when it would actually be paid under that alternative.
Past acquisition costs and previously received coupons are common historical items excluded from this choice comparison, so the result is not lifetime investment profit or a total return percentage.

A current stock valuation and a maturity payment years later are not amounts at the same date.
Uncheck the same-date confirmation if the values cannot be aligned; differences and parity prices will be withheld.
The tool does not invent a discount rate or reinvestment return.
If redemption is unavailable on the chosen date, its figure remains hypothetical rather than immediately receivable cash.
Negative net values are preserved when costs are large, and a zero share count has no parity price.

Worked example: KRW 10 million of principal

Assume no previous conversion, no costs or separate interest, and a share price of KRW 6,000 on the common valuation date.
A total redemption rate of 105% gives KRW 10,500,000 in net cash redemption.
These fictional figures verify the arithmetic and are not an offer or recommendation for any actual bond.

The candidate produces 500 additional shares.
Parity share prices are KRW 5,250 at the current conversion price and KRW 4,200 at the candidate price.
At 80%, 100% and 120% of the assumed market price, candidate conversion values are KRW 12,000,000, KRW 15,000,000 and KRW 18,000,000.
These are independent sensitivity assumptions, not probabilities or forecasts of future returns.

Step-by-step workflow

1. Confirm the bond series and face balance, and reconcile total and previously converted principal.
   
2. Copy original and current conversion prices from the filings and enter a candidate price.
   
3. Set only the floor, ceiling, direction and fractional settlement terms you have verified.
   
4. Choose a common valuation date and share-price assumption, then enter the corresponding redemption rate, separate interest and costs.
   
5. Record conversion and redemption availability and read conflicts and unknown-data notices first.
   
6. Save or print the results and ask the broker about final pricing, request processing and share delivery.
   

Changing inputs hides the previous results.
Calculate again before saving a revised report.
Contacting a broker or successfully submitting an exercise request is something you must confirm separately; this calculator does not submit a request or record an automatic completion.

Partial dilution and practical uses

Partial dilution is new conversion shares / (currently issued shares + new conversion shares).
With 1,000,000 currently issued shares and 2,500 candidate shares, it is approximately 0.249377%.
This excludes other holders, other CB series, bonds with warrants and stock options, so it is neither company-wide dilution nor an expected percentage decline in the share price.
Do not add earlier converted shares again when they are already included in the current issued-share count.

Frequently asked questions