Kobe Steel Ltd., Japan’s third-biggest steelmaker, plans to raise as much as 100.6 billion yen ($996 million) to reorganize its main operations.
Most of the funds to be raised through the share sale will be used on capital expenditures to boost iron and steel operations profitability and to reform its alloy business, the Kobe, Japan-based company said today in a regulatory filing.
The price will be fixed as soon as Feb. 19, the statement said. Kobe Steel closed down 6.6 percent at 156 yen in Tokyo trading, the biggest decline since May 30. The share sale’s announcement was made after the stock market closed.
Kobe Steel, which also produces aluminum and copper products and construction equipment and has posted losses in the past two full fiscal years, raised its full-year operating profit forecast today by 11 percent to 105 billion yen after third-quarter result beat analyst estimates.
The steelmaker today delayed the timing of its earnings release by two hours until 3:30 p.m., Japan time, citing the possibility that a board meeting would run longer than scheduled.