Mitsui Fudosan to raise R33bn in share sale

Posted On Tuesday, 27 May 2014 17:03 Published by
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Mitsui Fudosan says it will raise about USD3.2bn in a new share sale, as the property market rebounds before the 2020 Tokyo Olympics.

Shinzo Abe

Mitsui Fudosan said it plans to issue up to 110 million new shares at home and overseas in a deal valued at 324.57 billion ($3.18 billion). The sale is on track to be one of the biggest in Japan this year.

The firm said the shares would be priced between June 16 and June 18. The sale of an over-allotment of 10 million shares could boost the value of the deal.

The company said it was raising funds for new property development in Tokyo and other major cities in Japan as the world's number three economy rebounds on the back of Prime Minister Shinzo Abe's attempt to stoke long-tepid growth.

Vacancy rates have been falling in Tokyo while Japanese firms have seen stronger earnings over the past year.

"The Japanese economy is well into its recovery due to a series of government measures taken under the administration of Prime Minister Shinzo Abe," Mitsui Fudosan said in a statement.

It added that the 2020 Olympics and Tokyo's choice of certain areas as economic growth zones would also boost Japan's fortunes.

The announcement comes about two months after Japan Display the world's biggest maker of screens for smartphones and tablets and a key Apple supplier listed its shares in Tokyo following a $3.2 billion initial public offering.

The shares plunged on their debut in Tokyo and have struggled since the March 19 listing.

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