Dec. 1 (Bloomberg) -- Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, plans to sell about 1 trillion yen ($11 billion) of shares at a 3 percent to 5 percent discount, according to documents sent to investors.

The price for the sale, the largest secondary offering of common stock in Japan, will be set as early as Dec. 14, said Daiwa Securities Group Inc., one of the underwriters. Morgan Stanley, Nomura Holdings Inc., JPMorgan Chase & Co. and Mitsubishi UFJ Securities Co. are also underwriting the sale.

Tokyo-based Mitsubishi UFJ, which raised 400 billion yen selling shares at a 3 percent discount between December 2008 and January this year, said yesterday it is seeking to boost capital in anticipation of stricter global rules. Nomura, Japan’s biggest brokerage, in October sold 454 billion yen of stock at a 4.1 percent discount while Hitachi Ltd., the nation’s fourth- largest company by sales, plans to sell shares at a discount of 3 percent to 5 percent.

Japanese companies have raised almost 4 trillion yen in stock and equity-linked sales this year, compared with 1.5 trillion yen in 2008. Mitsubishi UFJ CEO Nobuo Kuroyanagi is taking advantage of restrictions on Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. to sell the shares before his rivals.

Capital Strength

The company’s shares rose 3.1 percent to 497 yen at the 3 p.m. close of trading in Tokyo, trimming the stock’s decline this year to 9.5 percent.

Japan’s largest banks trail the average of global rivals in capital strength and are vulnerable to tougher requirements, according to analysts at Goldman Sachs Group Inc.

Sumitomo Mitsui and Mizuho are prevented from selling more common shares until Dec. 19 and Jan. 10, respectively, after raising a combined $16 billion in stock sales during the last six months.

Mitsubishi UFJ flagged its plans for the stock sale on Nov. 18, when it reported profit rose to 141 billion yen in the six months to Sept. 30 from 90.2 billion yen a year earlier. The bank reiterated its forecast for full-year net income of 300 billion yen the same day.

To contact the reporter on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net

Last Updated: December 1, 2009 01:48 EST