Source disclosure: January 30, 2026
Nihon Seimitsu Co., Ltd. [7771.T]
TOKYO, Jan 30 (Pulse News Wire) -- Nihon Seimitsu Co., Ltd. (7771.T), a leading precision manufacturing company, has announced plans to issue new shares through a third-party allocation to raise funds aimed at improving its capital structure and supporting future growth strategies. The move comes after years of financial restructuring efforts that have seen the firm navigate through challenging economic conditions since September 2019.
The company's financial health deteriorated significantly starting from September 2019 due to poor performance and high reliance on interest-bearing debt. As a result, it received loan repayment schedule adjustments from its banking partners, commonly known as rescheduling, which helped manage its finances during this period. Despite these challenges, Nihon Seimitsu continued to implement structural reforms, reduce fixed costs, and enhance productivity, gradually restoring profitability. In the most recent fiscal year, the company reported positive operating income, ordinary income, and cash flow from operations.
In February 2025, Nihon Seimitsu signed a syndicated loan agreement with a consortium of banks, including key lenders, effectively normalizing its financial transactions by ending prolonged rescheduling arrangements. However, despite this normalization, the company still faces residual interest-bearing liabilities, with its equity ratio standing at just 26.1% as of March 2025. This low equity ratio poses potential obstacles to implementing flexible funding measures necessary for expanding business value going forward.
To address these issues, Nihon Seimitsu aims to compress its interest-bearing debt through this fundraising effort. The proceeds will be used primarily to repay loans under agreements with financial institutions. Following the completion of the third-party allotment share issuance, the company expects to improve its equity ratio to around the mid-30 percent range.
Regarding the specifics of the share issuance, Nihon Seimitsu plans to allocate 1,941,748 new shares at an issue price of ¥103 per share, raising approximately ¥200 million in total. The payment date for the issuance is set for March 6, 2026. The pricing was determined based on the average stock price over the past six months to ensure stability and objectivity.
Looking ahead, Nihon Seimitsu intends to publish its medium-term management plan “ASEAN Project III” for the fiscal year beginning April 2027. This project focuses on achieving higher quality processing technologies through proactive investments, building next-generation supply chains in metal processing, and leading global manufacturing industries. These strategic initiatives aim to maximize value creation and recovery post-pandemic while enhancing overall operational efficiency and market competitiveness.
AI-translated content. 🟡 Confidence: Standard See terms • Original filing