Japan's All Nippon Airways (ANA) will issue new shares worth over 200 billion yen ($2.5 billion) later this month. The sale's offering price will be set between July 18 and 20. Proceeds will be used to finance its 787s deliveries.
Despite the airline’s strong outlook, shares in ANA dropped by 14% on the news of the sale, as investors worry the new issuance will dilute their own investments.
"Through this offering of new shares... the company is seeking to promote investment in strategic aircraft that have high economic efficiency, chiefly the state of the art Boeing 787s," ANA said in a statement.
It said the public offering was intended to help it in "establishing a financial base that is able to respond in a timely and flexible manner to future growth opportunities, aiming to establish a multi-brand strategy based in Asia".
ANA to issue ¥200bn of new shares
