Kintetsu Corp. (9041), which operates railways around Osaka and Kyoto area, dropped the most in almost two years in Tokyo trading after announcing a plan to raise as much as 78.3 billion yen ($804 million) in a share sale.
The stock dropped 6.6 percent, the most since Sept. 28, 2011, to 395 yen as of 1:41 p.m.
Kintetsu, also the largest shareholder of air-freight forwarder Kintetsu World Express Inc. (9375), plans to sell at least 170 million new shares to the public to fund capital expenditure and debt repayment, the Osaka-based company said in a regulatory filing today. The issue may be priced as early as Sept. 4.
The company may sell an extra 25.5 million shares in over allotment, according to the statement.
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