Japan Airlines to sell new stock to buy planes

Japan Airlines to sell new stock to buy planes

Japan Airlines has announced their plan to release new shares in the market to get the funds to buy new planes for their operations.

Market analysts believe that such a move would definitely result in a drop in the prices of the share in the markets today.

The company plans to offer 700 million new shares and may sell an additional 50 million if there is demand. They have already placed orders for at least $5.3 billion worth of planes from Boeing Co.

The delivery of these planes is scheduled to begin this year making it necessary for the company to take such a drastic step.

Mizuho Securities Co. and Goldman Sachs (Japan) Ltd. would be managing the sale of these shares for the company.