Nomura Holdings Inc, Japan’s largest investment bank, said it may raise as much as ¥300 billion ($3.3 billion) selling stock to replenish capital after posting a record quarterly loss.
Nomura may sell common stock during a 12-month period starting February 19, it said in a statement on Friday. The move follows Nomura’s January 27 announcement that it will raise funds and consider selling unprofitable units after posting a ¥342.9 billion loss for the three months ended December 31.
Chief Executive Officer Kenichi Watanabe is seeking capital after predicting costs of about $2 billion to integrate units bought from bankrupt Lehman Brothers Holdings Inc in Asia and Europe. Top executives including Watanabe are forgoing bonuses and taking pay cuts of up to 30 per cent after Nomura’s shares slumped 63 per cent in the past 12 months.
“It’s positive to see Nomura trying to improve its capital, which will give it a cushion for future losses,” said Chizuru Tateno, a Tokyo-based-analyst at Standard & Poor’s.
Nomura is adding to the almost $1 trillion raised by financial companies worldwide since the US mortgage market meltdown set off a credit crisis in mid-2007.