Sharp Corporation (6753) may consider 200 billion yen in new shares
Sharp Corporation (TYO:6753) may be increasing its capital through a public share offering in the fiscal year ending March 2015, according to Asahi. Sharp is known for supplying the displays for the Apple iPhone and iPad. Sharp might raise around 200 billion yen ($2 billion) through this process.
Sharp said in a statement to the Tokyo Stock Exchange today that it is considering different options to increase capital and did not decide on a method. Sharp forecast a return to profit in the year ended March 31st on cost reductions and a higher demand for solar panels after it posted a combined 921 billion yen of losses in the previous two years.
Last year, Sharp raised 137.7 billion yen through public and secondary offerings, including stock sales to Denso Corp., Makita Corp., and Lixil Group Corp.
Sharp plans to launch a new restructuring plan to help convince potential investors among financial institutions. This strategy will focus on cutting production costs at its flat-panel factory in central Japan to expand into the lower-priced smartphone market.
Sharp is forecasting 5 billion yen of net income in the fiscal year just ended from a 545.4 billion yen loss the previous period. Sharp’s profit may climb to 28 billion yen this year.