Showa Denko K.K. (SDK; TSE:4004) hereby announces that, in connection with the issuance of new shares by way of the Third-Party Allotment, which its board of directors resolved on August 23, 2021 concurrently with the resolution on the issuance of new shares by way of public offering and the secondary offering of shares (secondary offering by way of over-allotment), the Company has received a notice from the allottee that it will subscribe for all of the shares which were scheduled to be issued, as set forth below:
(1) Number of shares to be issued: 2,524,500 shares (Number of shares scheduled to be issued: 2,524,500 shares)
(2) Total amount to be paid in: 5,966,201,340 yen (2,363.32 yen per share)
(3) Amount of stated capital to be increased: 2,983,100,670 yen (1,181.66 yen per share)
(4) Amount of the capital reserves to be increased: 2,983,100,670 yen (1,181.66 yen per share)
(5) Subscription period: October 12, 2021 (Tue)
(6) Payment date: October 13, 2021 (Wed)
1. The Third-Party Allotment described above was resolved by the Company’s board of directors on August 23, 2021 concurrently with the resolution on the issuance of new shares by way of public offering and the secondary offering of shares (secondary offering by way of over-allotment).
For the details of the Third-Party Allotment, please refer to the “Announcement Regarding Issuance of New Shares and Secondary Offering of Shares” announced on August 23, 2021 and the “Announcement Regarding Determination of Issue Price, Selling Price, etc.” announced on September 6, 2021.
2. Change in the total number of issued shares as a result of the Third-Party Allotment
Total number of issued shares at present: 182,376,792 shares (As of October 8, 2021)
Increase in number of shares as a result of the Third-Party Allotment: 2,524,500 shares
Total number of issued shares after the Third-Party Allotment: 184,901,292 shares
3. Use of proceeds raised this time
With respect to the net proceeds of 5,930,201,340 yen from the Third-Party Allotment, together with the net proceeds of 76,453,029,460 yen from the Japanese Public Offering and the International Offering, 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.
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/.