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Union Tool shares fall sharply on dilution concerns following its decision to sell treasury stock.
Union Tool <6278> shares fell sharply. The company announced after the close of trading on the 6th that it had resolved to offer treasury shares through a public offering. Selling intensified on concerns over potential share dilution and market oversupply. The company plans to offer 1.8 million treasury shares, along with a sale of up to 270,000 additional shares through an over-allotment option, depending on demand conditions. The offering price will be determined between the 14th and 17th. Union Tool plans to raise up to approximately \2.69 billion in gross proceeds, which will be primarily allocated to capital expenditure at its factory in Nagaoka City, Niigata Prefecture.
Source: MINKABU PRESS
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