Central Automotive Products Ltd., a Tokyo Stock Exchange Standard-listed maker of automotive body-coating chemicals, alcohol detectors and auto-parts trading, told the exchange on August 28 that its board has approved a secondary offering of 3,548,600 common shares. All of the stock comes from three financial-institution shareholders unwinding policy-held stakes: a non-life insurer selling 1,767,400 shares, another non-life insurer selling 1,083,400 shares, and a life insurer selling 697,800 shares.
| Seller type | Shares offered |
|---|---|
| Non-life insurer (1) | 1,767,400 |
| Non-life insurer (2) | 1,083,400 |
| Life insurer | 697,800 |
The company said it confirmed the insurers' intent to sell as Japan's broader push to reduce policy-held cross-shareholdings continues, and framed the sale as a chance to diversify its shareholder base and raise its profile. The lead underwriter may sell up to a further 532,200 borrowed shares in an over-allotment, a figure that can shrink or disappear depending on demand, with the option to buy replacement shares open through October 9.
The offering price is not yet set. It will be fixed on a date between September 7 and 10, at 0.90 to 1.00 times that day's closing price on the Tokyo exchange. To offset the added share supply and to support shareholder returns, the company separately resolved a buyback of its own stock, disclosed the same day.
The life insurer among the sellers and another existing shareholder agreed to a 180-day lock-up that begins on the pricing date and runs through the 180th day after the offering settles, during which they cannot sell further shares without the lead underwriter's consent, and the company itself agreed not to issue new stock over that period. No pricing outcome or trading reaction is yet known.