Tokyo Kiraboshi Financial (TYO:7173) will convert all of its First Series Class I preferred shares into common shares and cancel the preferred stock, while conducting a secondary share offering to broaden its shareholder base, according to a Friday filing on the Tokyo Stock Exchange.
Sumitomo Mitsui Trust Bank, which holds all 750,000 preferred shares in the company, will request conversion into 5.5 million common shares in two stages. Tokyo Kiraboshi will then cancel all preferred shares after the conversion process is completed.
The lender also resolved to conduct a secondary offering of 5.5 million common shares held by Sumitomo Mitsui Trust Bank, alongside a possible over-allotment of up to 824,700 shares.
The conversion and sale will result in changes to its major shareholders, Tokyo Kiraboshi said.
Sumitomo Mitsui Trust Bank is expected to temporarily become the company's largest shareholder before reducing its stake through the share sale.