Toei Animation is set to sell 3,893,300 shares, or about 9.2% of its total outstanding shares, in a strategic move to increase market liquidity and comply with the Tokyo Stock Exchange’s new listing standards. This stock offering, scheduled for March 2024, involves 3,113,300 shares from Bandai Namco Holdings and 780,000 from Sony Pictures Entertainment. The pricing for this offering will be determined in late February to early March 2024, with SMBC Nikko Securities and SMBC Nikko Capital Markets managing the domestic and international transactions, respectively.
This decision follows the Tokyo Stock Exchange’s introduction of stricter liquidity standards in April 2022, which includes maintaining a minimum number of shareholders and a market capitalization threshold. Despite exceeding these requirements, Toei Animation’s percentage of shares in circulation was below the preferred standard, prompting this significant share release.
As a consequence, Bandai Namco Holdings and Sony Pictures Entertainment will see their shareholdings in Toei Animation decrease substantially, with Bandai Namco’s share dropping from 11% to 3.45% and Sony Pictures exiting as a major shareholder. This move will not only increase Toei Animation’s trading activity but also allow Bandai Namco and Sony Pictures to bolster their financial reserves through the sale, benefiting from Toei Animation’s stock price rise in recent years.
This offering is expected to enhance Toei Animation’s liquidity and market presence, while simultaneously allowing its largest shareholders, Toei and TV Asahi, to solidify their influence over the company.
