Japan-based company Sharp Corp would be selling stocks at a discounted price to gather JPY 137 billion or USD 1.4 billion. The company would use the proceeds to shore up its balance sheet after posting annual record losses. According to a regulatory filing, Sharp would be pricing the shares at JPY 279 per share. Bloomberg said this represented a 4.1% discount to the stock's closing price in today's trading.
The public share sale would raise JPY 119.1 billion for the Osaka-based liquid crystal display maker. It would also sell stock to Makita Corp, Denso Corp and Lixil Group Corp to raise an additional JPY 17.4 billion.
In the past two years, Sharp had experienced JPY 921 billion worth of losses as competition intensified in the LCD market. Last month, Sharp said it would be able to raise JPY 166.4 billion from selling shares. However, since that was announced on September 18, Sharp's shares have posted a 23% drop in value.
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