Nihon Seimitsu Co.,Ltd. (7771): Third-Party Allotment of ¥1.94 million New Shares

Source disclosure: January 30, 2026

Nihon Seimitsu Co.,Ltd. [7771.T]

TOKYO, Jan 30 (Pulse News Wire) -- Nihon Seimitsu Co., Ltd. (7771.T), led by President Hideo Itoh, announced today that its board of directors has approved the issuance of new shares through a third-party allotment on January 30, 2026. The allotment will be made to Mr. Sung-Jin Pyun, allocating him 1,941,748 new shares at an issue price of ¥103 per share. This move is expected to raise approximately ¥200 million after deducting estimated issuance expenses of ¥2 million.

The company plans to utilize these funds primarily to reduce its debt burden. According to the announcement, the funds raised will be used to partially repay existing loans, aiming to improve the company's capital structure and enhance its equity ratio. Currently, Nihon Seimitsu’s equity ratio stands at 26.1%, below the average for companies listed on the Tokyo Stock Exchange Standard Market segment. By repaying part of its borrowings, the company expects to increase its equity ratio to around 30% within the next few months.

Nihon Seimitsu chose this method of raising capital over other options such as bank borrowing or public offerings due to several factors. Public offerings and rights issues could take longer to complete and might face market volatility risks, potentially affecting the certainty of fund-raising. In contrast, the third-party allotment allows for a relatively quick enhancement of the company's equity base while forming stable shareholder relationships.

The company emphasized that this fundraising approach aligns with its long-term business strategy and financial health goals. It aims to strengthen its financial foundation, thereby enhancing its operational stability and creditworthiness, ultimately benefiting all shareholders. The decision was reached after careful consideration of various funding methods and their potential impacts on both the company's finances and shareholder interests. The board deliberated extensively, ensuring that the terms were fair and reasonable, particularly given the significant recent fluctuations in stock prices.

This strategic move underscores Nihon Seimitsu's commitment to improving its financial position and securing a more robust future outlook amidst ongoing economic challenges. The company's efforts to restructure its operations and cut costs have shown positive results, contributing to improved profitability and cash flow. However, it continues to address lingering financial burdens, positioning itself for sustained growth and resilience in the coming years.

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