[Edaily Reporter Kim Hyung-il ] Amid continued weakness in its core business, optical communications component manufacturer LIGHTRON FIBER-OPTIC DEVICES(069540)is issuing a large number of new shares through the conversion of convertible bonds (CBs). With over 14 million new shares actually issued in the past three months alone, the burden of dilution on existing shareholders’ equity value appears to be growing.

According to SaveRo, the securities information portal of the Korea Securities Depository, on the 24th, a tally of the number of shares subject to conversion requests for convertible bonds (CBs) by KOSDAQ-listed companies from May 2026 to August 21 revealed that LIGHTRON FIBER-OPTIC DEVICES had the highest volume of conversion requests. During the same period, the number of shares subject to conversion requests was as follows: △LIGHTRON FIBER-OPTIC DEVICES: approximately 14.79 million shares △#QuantumRail: approximately 7.20 million shares △GENINUS Inc.(389030): approximately 5.80 million shares △Sonid(060230): approximately 5.19 million shares.

Based on LIGHTRON FIBER-OPTIC DEVICES’ individual disclosures for the same period, the total number of new shares actually issued amounts to 14,198,962. With a total of 112,691,897 shares outstanding, the new shares issued through recent conversions account for 12.6% of the current total.

In particular, there is a significant gap between the conversion price of some convertible bonds (CBs) and the current stock price. The conversion price for LIGHTRON FIBER-OPTIC DEVICES’ 13th CB is 743–744 won, which is significantly lower than the closing price of 2,805 won on the 24th. This means the current stock price is approximately 3.8 times the conversion price. The higher the stock price is relative to the conversion price, the greater the incentive for CB investors to convert their bonds into shares. When conversion occurs, new shares are issued, which can dilute the equity value of existing shareholders.

LIGHTRON FIBER-OPTIC DEVICES’ stock price has also been highly volatile. The stock price, which was below 1,000 won in March of this year, surged to as high as 6,900 won at one point in June. Since then, it has given up those gains and has recently been hovering around the 2,000-won mark. Analysts note that because the stock price rose sharply in a short period before undergoing a correction, the perceived burden on shareholders resulting from the conversion of convertible bonds may vary depending on future price trends.

Lee Hyo-seop, a senior research fellow at the Korea Capital Market Institute, stated, “The issuance of convertible bonds in itself sends a negative signal to ordinary shareholders,” adding, “If conversion occurs while the stock price is high, existing shareholders may feel that shareholder value has been eroded because they are not reaping a relative profit.”

In the case of LIGHTRON FIBER-OPTIC DEVICES, the burden lies not so much in the conversion of convertible bonds itself, but rather in the fact that the number of shares has increased significantly amid sluggish performance in its core business. In the first half of this year, consolidated revenue totaled approximately 11.4 billion won, down from 16.4 billion won in the same period last year, and the company continued to post losses, recording an operating loss of 3.8 billion won.

Revenue also declined in its core business of optical modules for telecommunications. First-half revenue from optical modules totaled 7.7 billion won, and the order backlog as of the end of June stood at approximately 3.56 billion won. In addition to its existing telecommunications equipment business, LIGHTRON FIBER-OPTIC DEVICES is pursuing new growth engines such as defense-related optical communications and quantum communications.

In particular, the key question is whether the growth expectations that recently drove the stock price higher will translate into actual results. With the telecommunications optical module business experiencing declining revenue and persistent operating losses, whether new businesses such as defense optical communications and quantum communications will generate actual revenue is expected to be a critical factor in the company’s future enterprise value.

We contacted LIGHTRON FIBER-OPTIC DEVICES regarding the scale of convertible bond conversions, future plans, and concerns about shareholder value dilution, but were unable to reach the company.