Toshiba Corp. said Friday it is preparing for a swift return to the Tokyo Stock Exchange’s first section, following its 2017 demotion on massive losses from its bankrupt U.S. nuclear unit, to raise capital for future investments.
“Toshiba intends to apply for its return to the First Section as soon as possible,” the conglomerate, whose shares are currently listed on the second section, said in a statement. The company could apply for the transfer as early as next February.
“Toshiba will continue to ensure effective execution of measures to improve its internal controls … and also work to strengthen them further,” the company said.
The manufacturer is taking steps for the return after the Tokyo Stock Exchange last month eased requirements for second section-listed companies to apply for the transfer to the first section.
Effective from next February, the TSE will require second section companies to have proper financial statements, along with auditor opinions for the past two years, to make a request for listing on the first section as opposed to the previous condition of five years.
Toshiba has already submitted to the bourse such financial statements for the two years through March 2019.
In August 2017, Toshiba shares were demoted from the first to the second section after the company’s liabilities exceeded its assets in fiscal 2016, failing to meet the bourse’s listing standards.
Under the existing rules, the company could not apply for the return to the first section for five years from fiscal 2017 as its financial statement for the April to December period in 2016 was released without approval from its auditor.
The auditor at the time did not sign off on the final figures for the April-December earnings as it and Toshiba disagreed over losses related to the company’s U.S. nuclear unit Westinghouse Electric Co., which filed for Chapter 11 bankruptcy protection in March 2017.