One of the largest Japanese carriers All Nippon Airways Co Ltd (ANA) is planning to raise approximately $2.6 billion through a public share offering in order to fund the company's expansion programme.
''The maximum amount of approximately 211 billion ($2.6 billion) from this offering will be applied to capital expenditure, including acquisition of fuel-efficient Boeing 787 aircraft, by the end of March 2015 for the main purpose of expanding the international route network,'' ANA said in a statement.
The ANA share issue, the country's largest public offering so far this year, will comprise issue of 914 million shares through Japanese and international public offerings, and 86 million shares in third-party allotment.
The pricing of the public issue will be determined during 18-20 July in accordance with Japan Securities Dealers Association's regulations. The subscription period will be 2 days immediately following the pricing date.
Further to the public issue announcement, ANA shares slumped 14 per cent to ¥194 ($2.43) in high volumes yesterday on the Tokyo Stock Exchange (TSE) as investors became apprehensive about dilution of their holdings.
On completion of the offering, the issued shares of ANA shall increase from the present 2,525 million shares to around 3,525 million shares.