Japanese manufacturer Olympus Corp is reflecting on releasing up to US$991 million (JPY100 billion) of new shares to finance the study of its endoscope business as well as further its medical business into developing nations. The move is the company's first public share offering in over 32 years.
In a report by the Nikkei business daily, it was revealed that the Japan based company is anticipating to boost its capital after it has suffered huge losses in 2011.
It can be recalled that Olympus was able to generate JPY50 billion last year by way of third party shares allocation with its business partner Sony Corp.
A Reuters report has noted that beginning late last year, numerous Japanese companies have adopted similar scheme of tapping the equities markets for funds.
Just last week, a regulatory filing by Dentsu Inc revealed that Japan's largest advertising agency may gather around JPY120 billion from the trade of recently released shares and treasury stocks. The amount is said to help pay off its short-term debt amounting to JPY200 billion for the purchase of Aegis Group Plc.
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