TOKYO, Sept 8, 2021 – (JCN Newswire) – Showa Denko K.K. (TSE:4004) hereby announces that, relating to the issuance of new shares of its common stock which its board of directors resolved on August 23, 2021, the number of shares to be issued by exercise of the option to purchase additional newly issued shares of common stock granted to the International Underwriters in connection with the International Offering has been determined as set forth below:
The number of shares to be issued by exercise of the option to purchase additional newly issued shares of common stock granted to the International Underwriters in connection with the International Offering: 2,065,500 shares
1. Number of new shares to be offered by way of public offering
32,665,500 shares of common stock of the Company, the aggregate of (i) through (iii) described below:
(i) 15,070,500 shares of common stock of the Company, issued for purchase by the Japanese Underwriters in the Japanese Public Offering;
(ii) 15,529,500 shares of common stock of the Company, issued for purchase by the International Underwriters in the International Offering; and
(iii) 2,065,500 shares of common stock of the Company, additionally issued for purchase by the International Underwriters upon exercise of the option in the International Offering.
2. Change in the number of issued shares as a result of this offering of new shares
Total number of issued shares at present: 149,711,292 shares (As of September 8, 2021)
Increase in number of shares by way of the offering of new shares: 32,665,500 shares
Total number of issued shares after the offering of new shares: 182,376,792 shares
In addition to the above, in connection with the issuance of new shares by way of Third-Party Allotment, the Company may additionally issue up to 2,524,500 shares of its common stock to a Japanese Underwriter on October 13, 2021.
3. Use of proceeds raised this time
With respect to the net proceeds from the Japanese Public Offering, the International Offering and the Third-Party Allotment, which the Company estimates to be, in total, up to 82,383,230,800 yen, the Company intends to use 5,900,000,000 yen as investment funds for manufacturing facilities for high-purity gases for electronics, etc. in chemicals segment and 5,800,000,000 yen as investment funds for manufacturing facilities for SiC power semiconductor-related materials and lithium-ion battery materials, etc. in electronics segment by the end of December 2023, with the remaining amount of approximately 70,600,000,000 yen as investment funds for production facilities for CMP slurries, copper-clad laminates, photosensitive films and rear door modules made of molded resin in Showa Denko Materials segment, as well as improvements to the Packaging Solution Center and increases to the production capacity of regenerative medicine manufacturing bases, etc. by the end of March 2024.
For more information regarding the use of proceeds, please refer to the press release “Announcement Regarding Issuance of New Shares and Secondary Offering of Shares” dated August 23, 2021.
Full press release can be viewed at www.sdk.co.jp/assets/files/english/news/2021/20210908_sdknewsrelease_e.pdf
About Showa Denko K.K.
Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY) is a major manufacturer of chemical products serving from heavy industry to computers and electronics. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high bright LEDs, and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, visit www.sdk.co.jp/english/.
Showa Denko K.K., CSR & Corporate Communication Office, Tel: 81-3-5470-3235