Taiheiyo Cement Corp said Tuesday it will raise up to JPY37.53bn (US$489m) through equity financing in a bid to finance its capital outlays.
The Japanese company will issue 250 million new shares to the public and plans an additional offering of 37.5 million new shares under an over-allotment arrangement. That will help boost the number Taiheiyo shares outstanding by up to 30% to 1.238 million.
The share offering price will be set between Sept. 7 and Sept. 9.
The company will use JPY8.7bn of the proceeds for reconstruction its plant in northern Japan, which was damaged by the March 11 quake and tsunami, and JPY16.5bn for capital outlays on facilities at other plants. The remainder will be used for investment and financing of its subsidiaries and repayment of loans.