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.