Business NEWS

Nomura plans to double US staff amid cash call

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 6, 2009

Nomura Holdings, Inc. (ADR) (NYSE:NMR) “is aiming to increase headcount in the US to 1,200 by the end of next March, or twice the number of employees on its US payroll, compared with January this year,” after hiring 300 in New York and other offices year to date, reports the Financial Times.

Nomura Holding (TSE:8604) will sell 800 million shares to local and overseas investors at 568 yen apiece, according to statements filed to the Ministry of Finance. Shares in the company, which said Sept. 24 it planned to raise as much as 511.3 billion yen, closed at 592 yen on the Tokyo Stock Exchange today.

The sale of the shares will be split evenly between the domestic and overseas markets. Nomura is believed to have already yielded offers from domestic investors totaling about three times the allotted shares, while the figure is around 10 times among overseas investors.

The capital boost is slated to increase outstanding shares by 29 per cent, which will dilute per-share value. To offset this, Nomura aims to use proceeds from the capital increase for investment in growth fields in the U.S. and other markets.

Nomura, which bought bankrupt Lehman Brothers in Asia and Europe a year ago, tumbled the most in at least 35 years after announcing the offering. Nomura would make ¥433bn on the transaction after deducting costs, it said.

As many as 400-million shares will be sold to overseas investors, 366- million in Japan, with 34- million available to meet excess demand.

Watanabe, who plans to use some of the funds to expand in fixed income, equities and investment banking in the US, has told investors last month that he would not rule out using acquisitions to expand there.

Like this article! ‹ German Bilfinger Berger to Buy Austrian MCE Beteiligungs GmbH Mongolia seals Oyu Tolgoi copper mine agreement with Rio Tinto, Ivanhoe Mines ›
Share this Post: Get It Delivered To Your Inbox