Risk of substantial share dilution through third-party allotments
First written in FY2017-Q2. 24 of 33 entries say "Worsened", first in FY2018-Q3. Latest entry: 2026-08-21.
Kitahama Capital Partners moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2017: 17 of 34 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Class, description and number of shares underlying stock acquisition rights (shares) Common shares 120,000,000 shares [116,250,000 shares]」
The 15th Series Stock Acquisition Rights added a maximum of 120 million potential shares, of which 116.25 million remained outstanding as of the filing date. This created additional dilution exposure relative to the 547,690,993 issued shares at the end of the period. - FY2026-H1WorsenedAnnual report
「1 April 2025–30 September 2025 157,070,000 298,626,993 1,339,022 5,760,775 1,339,022 5,625,762 (Note) 9 This represents an increase resulting from the exercise of stock acquisition rights.」
The exercise of the 14th Series Stock Acquisition Rights resulted in the additional issuance of 242,930,000 shares during the interim period, bringing the total number of issued shares to 547,690,993. Share dilution has progressed further. - FY2025WorsenedAnnual report
「1 April 2024–31 March 2025 157,070,000 298,626,993 (Excerpt omitted) During the period from 1 April 2025 to 26 June 2025, the exercise of the 14th Series Stock Acquisition Rights increased the total number of issued shares to 242,930,000, and increased capital and capital reserves by ¥2,070,978 thousand each.」
The exercise of the 14th Series Stock Acquisition Rights resulted in the issuance of 157.07 million shares during the fiscal year and a further 242.93 million shares by the filing date. The total number of issued shares increased from approximately 298.63 million at the end of March 2025 to 541.56 million as of the filing date, significantly increasing dilution. - FY2025-H1WorsenedAnnual report
「1 April 2024–30 September 2024 70,300,000 211,856,993 (Excerpt omitted) In addition, during the period from 1 October 2024 through the filing date of this semi-annual report, some of the 14th Series Stock Acquisition Rights were exercised during the current consolidated fiscal year. The details are as follows. (1) Class and number of shares issued Common shares 28,000,000 shares (Excerpt omitted) As a result, as of the filing date of the semi-annual report, the Company's capital was ¥5,259,761 thousand, capital surplus was ¥5,124,748 thousand, and the total number of issued shares was 239,856,993.」
The exercise of the 14th Series Stock Acquisition Rights resulted in the issuance of 70.3 million shares during the interim period and a further 28 million shares by the filing date, bringing the total number of issued shares as of the filing date to 239,856,993. Dilution has progressed further, in addition to the existing maximum of 400 million potential shares. - FY2024WorsenedAnnual report
「Class, description and number of shares underlying stock acquisition rights (shares) Common shares 400,000,000 shares [399,500,000 shares]」
The 14th Series Stock Acquisition Rights added up to 400 million potential shares after the filing date, with 399.5 million still outstanding as of the end of May. Potential future dilution exposure has expanded significantly relative to the 141,556,993 issued shares as of the end of March 2024. - FY2024-Q3Disclosure of increase in shares issuedAnnual report
「There were no exercises of stock acquisition rights attached to bonds with stock acquisition rights subject to revision of the exercise price, or similar instruments, during the third quarter accounting period. (Excerpt omitted) 268,900 141,556,993 (Note) This represents an increase resulting from the exercise of stock acquisition rights.」
Although the filing states that there were no exercises of bonds with stock acquisition rights subject to revision of the exercise price, or similar instruments, the changes in the total number of issued shares and other figures show an increase of 268,900 shares resulting from the exercise of stock acquisition rights, bringing the total number of issued shares as of the filing date to 141,556,993. - FY2024-Q2RestatedAnnual report
「There were no exercises during the second quarter of stock acquisition rights relating to convertible bonds with stock acquisition rights and other instruments with adjusted exercise-price provisions.」
No stock acquisition rights were exercised during the quarter, and total shares issued remained unchanged from the previous quarter-end at 141,288,093. Dilution exposure from previously issued stock acquisition rights and other instruments remains in place. - FY2024-Q1WorsenedAnnual report
「Common shares 141,288,093 141,288,093 Number of shares delivered upon exercise during the quarter (shares) 2,500,000 Number of shares delivered upon exercise during the quarter (shares) 555,555」
The exercise of Series 13 stock acquisition rights and the conversion of convertible bonds with stock acquisition rights resulted in the issuance of a total of 3,055,555 additional shares, bringing total shares issued to 141,288,093. Share dilution has increased further. - FY2023-Q3WorsenedAnnual report
「During the third quarter accounting period, the stock acquisition rights related to bonds with stock acquisition rights subject to conditions for revising the exercise price were exercised as follows.」
The conversion of convertible bonds with stock acquisition rights resulted in the issuance of a further 3,888,888 shares during the quarter, bringing total shares issued to 121,565,872. Cumulatively, 4,629,628 shares had been delivered, further increasing share dilution. - FY2023-Q2WorsenedAnnual report
「1 July 2022–30 September 2022 (Note 1) 4,826,400 117,676,984 70,972 4,194,318 70,972 4,059,305 (Note 1) Increase resulting from the exercise of stock acquisition rights.」
The exercise of stock acquisition rights resulted in the issuance of a further 4,826,400 shares during the quarter, bringing total shares issued to 117,676,984. As of the filing date, conversion of convertible bonds with stock acquisition rights had increased the figure to 120,876,272 shares, further increasing dilution. - FY2023-Q1WorsenedAnnual report
「Class, content and number of shares underlying the stock acquisition rights (shares)* Common shares: 44,444,400 shares During the first quarter, the stock acquisition rights relating to convertible bonds with stock acquisition rights and other instruments with adjusted exercise-price provisions were exercised as follows. Number of shares delivered upon exercise during the quarter (shares) 740,740」
Series 13 stock acquisition rights created future dilution exposure covering 44,444,400 shares, and a further 740,740 shares were delivered during the quarter. - FY2022-Q3WorsenedAnnual report
「1 October 2021–31 December 2021 (Note 1) 8,146,000 107,737,844 120,661 4,049,055 120,661 3,914,042 (Note 1) Increase resulting from the exercise of stock acquisition rights.」
The exercise of Series 12 stock acquisition rights resulted in the issuance of a further 8,146,000 shares during the quarter, bringing total shares issued to 107,737,844. A further 2,040,000 shares were issued by the filing date, further increasing dilution. - FY2022-Q2WorsenedAnnual report
「1 July 2021–30 September 2021 7,655,000 99,591,844 119,128 3,928,393 119,129 3,793,381 (Note) Increase resulting from the exercise of stock acquisition rights.」
The exercise of Series 12 stock acquisition rights resulted in the issuance of a further 7,655,000 shares during the quarter, bringing total shares issued to 99,591,844. A further 3,000,000 shares were issued by the filing date, bringing total shares issued as of the filing date to 102,591,844. - FY2022-Q1WorsenedAnnual report
「Number of convertible bonds with stock acquisition rights and other instruments with adjusted exercise-price provisions exercised during the quarter (rights) 8,750,000 Number of shares delivered upon exercise during the quarter (shares) 91,936,844 Between 1 July 2021 and the date of submission of this quarterly report, some of the Series 12 stock acquisition rights issued during the cumulative period of the first quarter were exercised. The details are as follows. (1) Class and number of shares issued: common shares, 4,180,000 shares」
Share issuance through the exercise of Series 12 stock acquisition rights progressed during the quarter, and a further 4,180,000 shares were issued by the filing date. Shares issued totalled 91,936,844 at the quarter-end and 96,116,844 as of the filing date, further increasing dilution. - FY2021WorsenedAnnual report
「Maximum number of shares allotted 34,482,800 shares (43.42% of total shares issued)」
Series 12 stock acquisition rights added future dilution exposure of up to 34,482,800 shares, equivalent to 43.42% of total shares issued. - FY2021-Q3WorsenedAnnual report
「1 October 2020–31 December 2020 1,000,000 72,013,244 35,500 3,380,546 35,500 3,245,533 (Note) Increase resulting from the exercise of Series 11 stock acquisition rights.」
The exercise of Series 11 stock acquisition rights resulted in the issuance of a further 1 million shares, bringing total shares issued at the end of the third quarter to 72,013,244 and further increasing dilution. - FY2021-Q2WorsenedAnnual report
「1 July 2020–30 September 2020 3,000,000 71,013,244 106,500 3,345,046 106,500 3,210,033 (Note) Increase resulting from the exercise of Series 11 stock acquisition rights.」
The exercise of Series 11 stock acquisition rights resulted in the issuance of a further 3,000,000 shares, bringing total shares issued to 71,013,244 and resulting in further actual share dilution. - FY2021-Q1WorsenedAnnual report
「During the first quarter of the current consolidated accounting period, stated capital and the capital reserve each increased by ¥53.25 million in connection with the exercise of stock acquisition rights issued in the previous fiscal year. In addition, some of the Series 11 stock acquisition rights were exercised between the end of the period and the filing date of the quarterly report. The details are as follows. (1) Class and number of shares issued: common shares, 3,000,000 shares」
Share issuance progressed through the exercise of stock acquisition rights during the quarter, and a further 3 million shares were issued by the filing date, resulting in further actual share dilution. - FY2020WorsenedAnnual report
「The exercise of stock acquisition rights between the fiscal year-end and the filing date increased shares issued by 4,500,000, increasing stated capital and capital surplus by ¥159.750 million each.」
In addition to new share issuance and the exercise of stock acquisition rights during the fiscal year, a further 4,500,000 shares were issued by the filing date, further increasing dilution exposure. - FY2020-Q3WorsenedAnnual report
「Shares issued as of the filing date (shares) 66,013,244 6. Allottees and number of rights allotted SH Holdings Limited 114,300 rights (11,430,000 potential shares)」
The issuance of 10 million shares through a private placement increased total shares issued as of the filing date to 66,013,244. In addition, stock acquisition rights representing 11,430,000 potential shares were issued, further increasing future dilution exposure. - FY2019-Q2MaterialisedAnnual report
「Some of the Series 10 stock acquisition rights were exercised between the fiscal year-end and the date of submission of the quarterly report. The details are as follows. (1) Class and number of shares issued: common shares, 1,840,000 shares (2) Increase in stated capital: ¥64.032 million (3) Increase in capital surplus: ¥64.032 million As a result, as of the date of submission of the quarterly report, stated capital was ¥2,817.546 million, capital surplus was ¥2,682.533 million, and total shares issued were 56,013,244.」
In addition to the issuance of 1,210,000 shares during the quarter, 1,840,000 shares were issued through the exercise of Series 10 stock acquisition rights by the filing date, increasing total shares issued to 56,013,244. - FY2019-Q1MaterialisedAnnual report
「During the first quarter of the current consolidated accounting period, stated capital and the capital reserve each increased by ¥29.58 million in connection with the exercise of stock acquisition rights issued in the previous fiscal year.」
The exercise of stock acquisition rights resulted in further share issuance and an increase in capital during the quarter, with further actual dilution. Shares issued at the quarter-end totalled 52,963,244. - FY2018MaterialisedAnnual report
「12 March 2018 (Note 9) 7,172,000 52,113,244 123,717 2,681,826 123,717 2,546,813」
The paid-in private placement on 12 March 2018 resulted in the issuance of 7,172,000 shares, bringing total shares issued to 52,113,244. Substantial share dilution has actually occurred. - FY2018-Q3WorsenedAnnual report
「Number of stock acquisition rights (rights) 40,000 Number of shares underlying the stock acquisition rights (shares) 4,000,000 (Note 1) Amount payable upon exercise of the stock acquisition rights (yen) 77 (Note 2) Exercise period for the stock acquisition rights 22 June 2018 to 21 December 2027」
New stock acquisition rights covering 4,000,000 shares were issued, increasing the Company's future dilution exposure. Shares issued as of the quarter-end totalled 44,941,244, and no exercise of the stock acquisition rights had yet been reported. - FY2018-Q2MaterialisedAnnual report
「1 July 2017–30 September 2017 10,000,000 44,941,244 358,000 2,434,392 358,000 2,299,379 (Note) Increase resulting from the exercise of Series 8 stock acquisition rights.」
The exercise of Series 8 stock acquisition rights increased the number of shares by 10,000,000 in the second quarter, bringing total shares issued to 44,941,244. Further dilution has actually occurred. - FY2018-Q1MaterialisedAnnual report
「Some of the Series 8 stock acquisition rights were exercised between the fiscal year-end and the date of submission of the quarterly report. The details are as follows. (1) Class and number of shares issued: common shares, 9,200,000 shares」
In addition to the exercise of 3,800,000 stock acquisition rights during the quarter, 9,200,000 shares were issued by the filing date in respect of the stock acquisition rights involving substantial dilution, resulting in further actual dilution. - FY2017-Q3MaterialisedAnnual report
「In addition, stated capital and the capital reserve increased by ¥430.5 million in connection with the payment for new shares issued through a third-party allotment approved on 10 November 2016. Stated capital and the capital reserve also each increased by ¥103.82 million in connection with the exercise of stock acquisition rights approved for issuance at the same time.」
The private placement and issuance of stock acquisition rights, previously described as scheduled for payment at a future date, were followed by the actual payment for the new shares and exercise of the stock acquisition rights. - FY2017-Q2First statedAnnual report
「In light of the fact that this capital raising constitutes an issue of shares on favourable terms and would result in a considerably high degree of dilution, it was made subject to approval by special resolution at the Company's extraordinary general meeting of shareholders held on 10 November 2016. At that extraordinary general meeting, the proposal concerning the issuance of these shares was approved and adopted as originally proposed.」
The Company itself stated that the new private placement and issuance of stock acquisition rights would be on favourable terms and would result in a considerably high degree of dilution. As of the filing date, payment for the share issue was scheduled for a future date, and the dilution had not yet occurred.