By Kosaku Narioka
JFE Holdings’ shares fell sharply Tuesday morning after the Japanese steelmaker said its board is scheduled to discuss a capital raising later in the day.
The shares were recently 8.8% lower at 2,222.5 yen after falling as much as 9.0% earlier.
JFE said in a statement Tuesday morning, following a report by Japanese business daily Nikkei, that it plans to raise about 200.0 billion yen ($1.37 billion) by selling new shares and convertible bonds to foreign investors.
The steel maker plans to use the proceeds to boost capacity for products used for electric-vehicle motors and set up an electric furnace as part of its efforts to reduce carbon emissions, the Nikkei report said.
In August, JFE lowered its revenue forecast for the fiscal year ending March 2024, citing weakness in its overseas business. It projected revenue would rise 2.1% to Y5.380 trillion, down from Y5.540 trillion previously forecast, and that net profit would climb 17% to Y190.00 billion.
Write to Kosaku Narioka at [email protected]
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