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Mazda Motor to Raise $1 Billion, Sets Price for Share Offering

By Irina Waqar for CEOWORLD Magazine Updated:October 14, 2009

Mazda Motor Corp.(TYO:7261), part owned by Ford Motor Co. (NYSE:F), will sell as much as 93.6 billion yen ($1 billion) of stock at a 3 percent discount to today’s closing price as it raises money to develop more fuel-efficient cars.

Mazda (PINK:MZDAF) (MZDAY) will sell new and existing shares owned by the company to local and overseas investors at 213 yen apiece, it said in a statement today. Shares in the company, which said Oct. 5 it planned to raise as much as 96 billion yen, fell 6.4 percent to close at 220 yen in Tokyo before the announcement, Bloomberg reported.

The price represents a 3.2% discount to Mazda shares’ closing price of Y220 on the day on the Tokyo stock exchange.

The car maker Mazda (BOM:523792) expects to generate Y93.56 billion in proceeds from the offering, and will use Y60 billion to develop technologies to improve fuel-efficiency, while the rest will be spent to upgrade facilities.

Earlier in the day, Mazda shares ended down 6.4% as hedge funds speculated that the firm may set the price for its new share offer after the market closed, traders said.

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Author : Irina Waqar

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