Shareholders’ value which is diluted by the equity financing
Asanuma carried out a share issue at market price in March 2017 and only 2,391 mil capital was increased while it led to 10% of dilution.
Reviewing 15 years’ Asanuma’s equity capital, the amount of its equity capital in recent years has reached at the record high level. It is doubtful that such share issue which led to 10% of dilution was truly needed in FY 2016.
Change of Asanuma’s equity capital
（Source：QUICK ASTRA MANAGER）
Just after the equity financing, Asanuma announced the investment plan funded by such share issue as following. According to the plan, the estimated investment amount in total was ca. 987 mil per annum. Asanuma’s annual free cashflow in FY 2015, preceding fiscal year of the equity financing, was 2,525 mil. It is hard to justify such share issue as Asanuma could afford such plans easily with its periodic income.
| Plans | Until | Amount | Per annum |
| R&D equipment | FY2018 | 1,175 mil | 588 mil |
| ICT investment | FY2019 | 590 mil | 197 mil |
| Cost reduction | FY2019 | 610 mil | 203 mil |
987 mil in total for investment per annum
(Source: Press release on 24th march 2017 )
