News Room 2005 (The former Furukawa-Sky)

  • twitter
  • facebook
Listen to this page

Notice Regarding the Issue Price and Provisional Book-Building Terms for the Public Stock Offering

November 10, 2005

With regards to the public offering through issuance of new shares which was decided upon in our board of directors meeting held on October 26, 2005, we determined the following terms including prices in our board of directors meeting held November 10, 2005.

1.Issue price:
¥408 per share
(However, in the event the subscription price falls below this price, we reserve the right to cancel the offering)
2.Amount to be excluded from our capital:
¥204 per share
(Moreover, in the event the subscription price exceeds our issue price, we will not include the difference in our capital.)
3. Provisional share price range:
¥480 to ¥510
4.Factors determining our provisional price range:

We determined our provisional share price range based on surveys of institutional investors in which we found the following opinions.

Our earnings potential is viewed favorably with growth in profit expected due to concentration of products and increases in sales volumes.
Growth in earnings is expected over the intermediate to long term arising from increased demand for aluminum products required for reducing the weight of vehicles and for other applications.

While growth rates are relatively modest, our financial position is strong and our profitability high due to our low exposure to the construction industry.

In addition to the above findings, we determined a range of ¥480 to ¥510 per share based on our consideration of our standing relative to our competitors, the current market environment, recent trends of newly listed companies in the capital markets, and the potential risk of pricing volatility between the time of this writing and our issue.


(1)Summary of public offering and sale of existing shares:
1.Number of shares to be issued Common  22,100,000
2.Number of shares to be sold Common shares  To be sold by underwriter 27,100,000
To be sold through over-allotment  5,000,000 (*)
(2)Bid indication period November 14, 2005 (Monday) toNovember 18, 2005 (Friday)
(3)Pricing date November 21, 2005 (Monday)(We will set the offering price and sales price at a value above the issue price after paying due consideration to the level of demand for the issue based on the provisional terms.)
(4)Subscription Period November 24, 2005 (Thursday) to November 29, 2005 (Tuesday)
(5)Payment deadline December 1, 2005 (Thursday)
(6)Dividend reckoning date October 1, 2005 (Thursday)
(7)Share delivery date Decmeber 2, 2005 (Friday)

(*)Nomura Securities Co., Ltd. will serve as the issuer in the over-allotment described above, which will be undertaken with due consideration for the level of demand at the time of subscription and sales to the underwriters. Therefore, the number of shares to be sold in the over-allotment indicates the upper limit of the number of shares to be sold and, depending upon demand for the issue, we may reduce the number of shares to be sold or cancel the issue.
Common shares that are the subject of this over-allotment will be borrowed by our underwriter Nomura Securities from our shareholder Furukawa Electric Co., Ltd. With regards to this, we have also made the decision in our board meetings held on October 26 and November 10, 2005 to undertake a third party private placement 5,000,000 of our common shares via Nomura Securities with a payment deadline of January 4, 2006. We also note the potential for an open market purchase of our common shares in the Tokyo Stock Exchange by Nomura Securities to return the shares borrowed from our shareholder Furukawa Electric for the over-allotment described above (hereafter "Syndicate Cover Transaction"), where the maximum limit of purchase will be equivalent to the number of shares required for the offering by over-allotment, between the dates of December 2 and 26, 2005. In the event the Syndicate Cover Transaction is undertaken, Nomura Securities will not purchase its allotted share of the third-party placement equivalent to the number of shares acquired as a result of the Syndicate Cover Transaction, in which case subscription to all or part of the shares issued in the third-party placement may not transpire and result in forfeiture.
Consequently the number of shares offered in the third-party placement maybe drastically reduced or the entire deal maybe cancelled. Furthermore, during the Syndicate Cover Transaction period, Nomura Securities may decide against undertaking these transactions or to terminate these transactions before the number of shares acquired reaches the designated upper limit.