Kintetsu Corp., 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., 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.
Nomura Holdings Inc., Mitsubishi UFJ Financial Group Inc., Mizuho Bank Ltd. and Daiwa Securities Group Inc. will manage the share sale, according to the filing.