Sharp Corp., the electronics-maker controlled by Foxconn Technology Group, canceled plans to raise as much as ¥200 billion ($1.8 billion) in a public share sale, blaming market instability fueled by U.S.-China trade tensions.
The Osaka Prefecture-based company, which had planned to use the proceeds to purchase preferred stock and improve its finances, also retracted a full-year report related to the sale, it said in a statement Friday. The shares jumped as much as 15 percent in Tokyo.
"The threat of dilution was one of the main reasons for the recent share price declines," said Hideki Yasuda, an analyst at Ace Research Institute. "With that out of the way, it's easier for investors to buy back in."