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NICHICON CORPORATION <6996> falls for third straight session on dilution concerns from CB issuance

Thu Sep 3, 2026 10:14 am JST Catalyst

NICHICON CORPORATION <6996> fell for a third straight session after announcing after market close on the 2nd plans to issue euro-yen convertible bonds due 2031 with call options. Potential dilution of earnings per share stemming from equity conversion weighed on sentiment. Total proceeds are about 22 billion yen.

Proceeds will fund capital expenditures to boost production capacity for large-format aluminum electrolytic capacitors and conductive polymer hybrid aluminum electrolytic capacitors. The ratio of potential shares to total outstanding shares - excluding treasury stock as of end-July - is expected to reach 9.54%.

At the same time, NICHICON disclosed plans to buy back up to 2,248,000 shares or 5 billion yen through off-exchange trading (ToSTNeT-3) on the Tokyo Stock Exchange to mitigate the short-term supply-demand impact from the CB issuance. According to Tokyo Stock Exchange off-exchange repurchase data, NICHICON acquired 1,922,300 shares at 2,601 yen a share on the 3rd.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.