Sony plunges 8.25 percent on massive IPO plans
(MENAFN) Shares in Sony plunged 8.25 percent on weakening fears after the Japanese electronics giant announced plans to raise USD3.6 billion through stock and bond sales, AFP reported.
Sony plans to raise a total of USD3.6 billion, more than 10 percent of the company's market capitalization as. It is the first new share issuance in 26 years, the company said.
Of the USD3.59 billion, USD2.61 billion will be obtained though new issuance and a secondary offering of shares. The company plans to raise another USD976.83 million in bonds that can be converted into stocks.
"As financing this size is unusual, it's only natural that the stock fell in accordance with an expected dilution" of per-share value, senior strategist at Daiwa Securities said in a statement.
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