JX Advanced Metals Falls 15% on ¥250B Convertible Bond Plan

On May 12, shares of JX Advanced Metals fell 15% after the company announced plans to issue ¥250 billion ($1.6 billion) in zero-coupon convertible bonds to fund a share repurchase. The drop was the firm’s largest one-day decline since April 2025.

The company said the bonds will mature in 2029 and pay no periodic interest; bondholders will have the option to convert into equity. Proceeds will fund a tender offer to buy up to 57.3 million shares at ¥436 each, equal to about 6.17% of the company’s issued capital. The tender window is scheduled from May 21 to June 17, 2026.

JX Advanced Metals described the tender offer as intended to reduce share count, raise earnings per share and improve return on equity.

Investors sold shares after the financing plan and after JX Advanced Metals issued softer-than-expected operating income guidance, based on trading activity around the announcement.

The zero-coupon structure eliminates regular interest payments for the issuer and concentrates potential returns for bondholders in the conversion option. If the share price reaches conversion levels, bondholders could convert and increase the outstanding share count. If the stock remains below conversion levels, bondholders would likely hold to maturity and receive repayment.

The company has not yet disclosed the conversion price for the bonds. A conversion price set near current trading levels would increase the chance of conversion and potential dilution; a conversion price set well above current trading levels would reduce that chance.

JX Advanced Metals produces copper, rare metals and advanced materials for electronics and semiconductors. In March 2026 the company announced plans to increase investments in chip materials to address global supply shortages.

Shareholders and analysts will watch the final conversion terms, the participation rate in the tender offer and any updated operating guidance to assess effects on outstanding shares and per-share metrics.