All Nippon Airways to raise Y211bn via new share issue

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All Nippon Airways (ANA) is seeking to raise up to yen (Y) 211 billion ($2.63 billion) by issuing new shares to finance its aircraft orders and expand its international network.

The Japanese carrier will issue 914 million new shares - 614 million for the Japanese market and 300 million for the international market.

The Star Alliance member could also make a secondary offer of 86 million shares through third party allotments.

The offer price will only be determined between 18 July and 20 July, says the carrier in a statement.

Proceeds from the share sale will go towards capital expenditure, including the acquisition of Boeing 787s, for the purpose of expanding its international route network.

News of the issue, however, sent its share price tumbling 13.8% to Y193 on Tuesday.

Media reports in Japan add that the carrier is now raising funds to pre-empt rival Japan Airlines' initial public offering, which is believed to be slated for September.

ANA reported in April that its net income for the year to 31 March 2012 increased 20.9% to Y28.1 billion.