* Olympus to issue up to 37 billion new shares on overseas
* Company will invest 97.7 billion yen in its medical
* Share price has now recovered after 2011 accounting
TOKYO, July 8 Japan's Olympus Corp said
it will raise up to 118 billion yen ($1.17 billion) in a new
share issue to expand its medical equipment business and rebuild
its financial health, after an accounting scandal plunged the
company into the red.
The shares will be offered to overseas investors, mainly in
the United States and Europe, the world's biggest endoscope
maker said in a statement on Monday.
Olympus, which counts Sony Corp as its largest
shareholder, is marketing its shares to foreigners as Prime
Minister Shinzo Abe's economic stimulus measures boost global
appetite for Japanese shares.
The company's shares lost more than 80 percent of their
value in the months following a $1.7 billion accounting fraud.
They are now about one-quarter above their pre-scandal level,
rebounding in line with a Japanese stock market rally.
Olympus became entangled in one of Japan's biggest
accounting scandals in October 2011 as its British chief
executive turned whistleblower and revealed details of
investment losses the camera and medical equipment company hid
The latest share offering was announced less than a week
after guilty verdicts and suspended sentences for three former
executives marked the end of the scandal.
Last year Olympus raised 50 billion yen through a
third-party allocation of shares to business partner Sony.
Olympus will use the bulk of the funds it is raising to
bolster its medical business, including 19.7 billion yen to
build three medical equipment factories. Two will be located in
Fukushima prefecture, the site of the 2011 nuclear disaster.
It will issue 32 million new shares with an option to sell
as many as 5 million additional shares in an overallotment.
Olympus, which controls roughly 70 percent of the global
market for gastrointestinal endoscopes, will also sell 4 million
of its own common stock.
The shares will be sold through brokerages SMBC Nikko
Capital Markets, UBS Limited and Morgan Stanley.
Many Japanese companies are tapping the rallying domestic
market to raise funds, with foreign investors helping to boost
Dentsu Inc, Japan's largest advertising agency,
last week said it would raise about 120 billion yen from the
sale of new shares and treasury stock to help pay down debt for