Kintetsu to raise cash via share issues

Kyodo

Kintetsu Corp. said Wednesday it will raise up to ¥78.3 billion through public and private share issues in September to help finance its construction in Osaka of Japan’s tallest skyscraper.

The railway serving the Osaka area plans to issue 170 million shares through a public offering at a price to be fixed by Sept. 10. Payments for the new shares will be made between Sept. 11 and 18.

Depending on responses to the public offering, Kintetsu intends to issue up to 25.5 million shares for allotment to Nomura Securities Co.

Of the total proceeds from the share issues, Kintetsu plans to spend some ¥20.8 billion for the construction of the Abeno Harukas skyscraper, where Kintetsu Department Store Co. opened its flagship store in June. The building’s observation deck and hotel portion will open next spring.

Kintetsu also plans to spend ¥7.4 billion for investment in equipment for its railway operations and ¥50 billion for repaying loans that have swollen due to the Abeno Harukas construction.