TOKYO, Apr 06 (Pulse News Wire) – Union Tool Co. (6278.T) announced plans to dispose of shares and conduct an oversubscription offering to raise capital for expanding production capacity.
The company aims to enhance its manufacturing capabilities to meet growing demand for high-end PCB drills used in advanced electronics. The disposal of shares will occur via general public subscription from April 14 to April 17, with the final price determined on one of those days. Payment for the subscribed shares will be due between April 21 and April 23. Additionally, Union Tool will allocate up to 1.8 million shares for an oversubscription offering, contingent on market conditions.
Proceeds from these transactions will fund several key projects, including the construction of the Niigata Sixth Plant scheduled for completion by June 2027 and equipment upgrades at existing facilities in Niigata and Mito. Any excess funds beyond these commitments will be allocated towards research and development expenses by December 2027. Following the transaction, the company's remaining treasury stock will stand at 296,487 shares, down from the current level of 2,096,487 shares as of March 31, 2026. The funds raised will support Union Tool’s strategic growth initiatives aimed at strengthening its position as a leading provider of precision cutting tools.
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