Kansai Electric Falls Most in Over 50 Years on Share Sale Plan
- Bond funding costs are rising for frequent issuers in Japan
- Other firms may mull public stock sales, Phillip’s Sasaki says
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Kansai Electric Power Co. shares saw their biggest drop in at least 50 years after the Japanese utility said it plans to raise as much as ¥504.9 billion ($3.2 billion) from a share sale, fueling concerns about earnings dilution.
Kansai Electric tumbled 18%, its steepest fall since September 1974, when Bloomberg data first became available. A gauge of power companies led the drop on the Topix index, as peers sank on worries they may follow suit.