Sony Sets 300 Billion Yen Share Sale Price 3% Below Close

Updated on

Sony Corp. said it expects to raise as much as 300 billion yen ($2.4 billion) after setting a price for new common shares it is selling to raise money for boosting chipmaking capacity.

The shares will be offered at 3,420.5 yen apiece to investors, the electronics maker and entertainment producer said Monday in a statement. That’s about 3 percent less than Monday’s closing price. The company is also offering 120 billion yen in bonds due in 2022 and convertible to shares at 5,008 yen.

Sony President Kazuo Hirai has said that after years of losses and restructuring, the company is beginning a growth phase. He pledged “aggressive investments” into areas including image sensors for smartphone cameras, video game network services and virtual reality gear.

The company had said on June 30 it planned to raise about 321.5 billion yen in the sale of common stock and about 120 billion yen in convertible bonds.

The company’s shares fell 1.2 percent to 3,485 yen as of the close in Tokyo trading, compared with a 1.6 percent gain for the Topix index.

Sony is quadrupling spending on semiconductors to 290 billion yen this year to meet surging demand for the sensors used in Apple Inc. and Samsung Electronics Co. smartphones. Sony expects sales in the business to climb as much as 62 percent to 1.5 trillion yen in three years.

Advisers for the sale are JPMorgan Chase & Co., Morgan Stanley and Nomura Holdings Inc.

Sony’s operating profit will reach 500 billion yen in the year ending March 2018, the company has forecast in its mid-term plan. That’s the highest since 520 billion yen in 1998.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE