Analysis of DELTA stock price drop and convertible bonds

MGR Online•Economy•22h ago

Reader Briefing

DELTA stock prices have plummeted following announcements of convertible bond issuances by major shareholders in Singapore and Taiwan.

•Delta Electronics (Thailand) Public Company Limited (DELTA) shares dropped for six consecutive trading days.
•Delta Electronics Int'l (Singapore) Pte. Ltd. plans to issue 1.5 billion USD in non-interest bearing convertible bonds around September 21, 2026.
•Delta International Holding Limited B.V. issued 525 million USD in convertible bonds in January 2025.
•The issuance of convertible bonds is expected to increase the total number of DELTA shares.

•Delta Electronics (Thailand) Public Company Limited (DELTA) closed at 233 baht on Tuesday after a 19 baht drop, with a trading value of 12,256 million baht.
•Delta Electronics Int'l (Singapore) Pte. Ltd., the largest shareholder with 42.85%, plans to sell 1.5 billion USD in convertible bonds around September 21, 2026, to increase working capital and support business expansion.
•The Singaporean bond consists of Tranche A (500 million USD, redeemable in 2027, conversion price 266.80 baht) and Tranche B (1,000 million USD, redeemable in 2031, conversion price 301.60 baht).
•In January 2025, Delta International Holding Limited B.V., the third-largest shareholder with 12.71%, issued 525 million USD in convertible bonds redeemable in 2030 at a conversion price of 187.60 baht.
•The issuance of convertible bonds by major shareholders has created a psychological impact, leading general and foreign investors to sell DELTA shares.
•Some brokers recommend buying the dip, despite Delta Electronics (Thailand) Public Company Limited (DELTA) having a P/E ratio exceeding 100 times and a dividend yield of only 0.25%.
•Major shareholders in Singapore and Taiwan aim to raise large amounts of capital while maintaining management control despite their reduced share proportions.

Full article content is available on the original source.

General investors and foreign investors

"Major shareholders are starting to dump their shares."

ผู้ถือหุ้นใหญ่เริ่มทิ้งหุ้น

Delta Electronics (Thailand) Public Company Limited(เดลต้า อิเล็กทรอนิกส์ (ประเทศไทย) จำกัด (มหาชน))

A company whose stock price has significantly dropped and is the subject of analysis by Sunan Srichantra.

Delta Electronics Int'l (Singapore) Pte. Ltd.

The number one major shareholder of Delta Electronics (Thailand) Public Company Limited holding 42.85% of registered capital.

Delta International Holding Limited B.V.

The number three major shareholder of Delta Electronics (Thailand) Public Company Limited holding 12.71% of registered capital.

Sunan Srichantra(สุนันท์ ศรีจันทรา)

The author of the analysis regarding DELTA stock prices.