Olympus shares down on offering news

The share price of Olympus fell today (July 8th) after the company revealed it is planning a massive new offering on the Nikkei index.

Although the Nikkei rose by 2.6 per cent to erase the 1.6 per cent losses it sustained yesterday, Olympus stocks were down by nearly six per cent for the day.

They fell by 5.72 per cent in today's trading session to plunge to a near eight-week low of 2,928 yen in Tokyo.

Earlier in the week, it was reported widely that the firm is considering issuing up to 100 billion yen (£665 million) of stocks. This would be the Japanese company's first share offering in 32 years.

"The company intends to use the net proceeds to further its growth strategies … which focus on the further strengthening of its medical business and rebuilding its financial health," Olympus said in a statement.

Last year, 50 billion yen was raised by the company through a third-party allocation of shares to business partner Sony Corp.

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