Sony Corp. will sell about 332 billion yen ($2.9 billion USD)
of shares in its insurance unit this fall to raise funds for its consumer
electronics and computer entertainment divisions. The sale will be Japan's
biggest initial public offering this year, according to Bloomberg.
Sony will sell 725,000 shares, or 34.5 percent of
Tokyo-based Sony Financial Holdings Inc., each for 415,000 yen – final pricing
will be set on October 1. The unit will offer 75,000 new shares, with trading
to start on the Tokyo Stock Exchange on October 11.
Industry onlookers expect Sony to channel the funds into its
electronics and gaming divisions. Funds put into the electronics business may be
used to increase production of Bravia televisions – a strong selling product
that helped bolster
Sony’s bottom line.
On the other end, the funds may also help to soften the
losses sustained by the Sony Computer Entertainment Inc. division, which had a net loss of $237
million last quarter, even though income was up 60 percent.
“Sony could use the funds for various options to strengthen
its electronics and game businesses,” said Mitsuhiro Osawa, a Tokyo-based
analyst at Mizuho Investors Securities Co. “A cut in the price of the
PlayStation 3 is one option.”
Although the price point of the PlayStation 3 hasn’t moved
much in Japan, Sony Computer Entertainment America slashed in July
the price of the 60GB console by $100. Analysts
are now predicting that Sony will soon reduce the price
of its newly introduced 80GB console by $100, bringing it also down to $499.