Kawasaki Heavy Industries has locked in the price and size of an overseas share sale that will hand it ¥92.5bn to spend, mostly on production lines it says need robots and "physical AI" more than they need more workers.
The Kobe-based maker of aircraft engines, gas turbines, robots and ships priced 37,350,000 new common shares at ¥2,609.0 apiece, for total proceeds of ¥93.4bn before costs. After an estimated ¥970mn in issuance expenses, net proceeds come to ¥92.5bn. Payment is due July 22, 2026, with Nomura International and Mizuho International running the sale as joint lead managers and bookrunners. The sale targets overseas markets, with any US placement restricted to qualified institutional buyers under Rule 144A.
| Instrument | Size | Price / Terms | Key Date |
|---|---|---|---|
| Common stock (overseas offering) | 37,350,000 new shares | Offer price ¥2,609.0/share; issue price ¥2,501.40 | Payment due July 22, 2026 |
| Euro-yen convertible bond due 2031 | ¥50bn face value (¥50.5bn issue price) | Zero coupon; initial conversion price ¥3,913 | Matures July 31, 2031 |
Where the ¥92.5bn goes
Kawasaki Heavy says it will spend the net proceeds by the end of March 2029 on manufacturing capacity, installing robotics and physical-AI production technology at its own plants. The stated goal is not just more output at home: the company says data and know-how gathered on its own factory floors will also feed into the automation and robotics solutions it sells to customers. The spending breaks into four areas: expanded output and efficiency at the Gifu, Nagoya, Nishijin and Akashi plants that anchor its commercial aircraft and aero-engine business; capacity expansion at the Akashi gas-turbine plant; investment at the Nishi-Kobe robot plant to lift output of robots used in semiconductor manufacturing equipment; and a buildout at the Sakaide shipyard to build more liquefied-hydrogen, LPG and ammonia carriers. Any amount left over goes to working capital.
A convertible bond alongside the stock
The same July 2 board meeting that cleared the share sale also approved a Euro-yen convertible bond programme sold in Europe and Asia, again excluding the US except for Rule 144A buyers. The 2031 tranche carries no coupon, a face value of ¥50bn (¥50.5bn issue price, at 101.0% of par with a 103.5% offer price) and an initial conversion price of ¥3,913, with redemption due July 31, 2031. A second tranche maturing in 2033 was resolved at the same meeting, though the filing's disclosed pricing terms cover only the 2031 bond. Between the new shares and the convertible bonds, Kawasaki Heavy has opened two separate paths to dilution: one immediate, from the stock sold this month, and one deferred, if bondholders convert at ¥3,913 before the 2031 maturity.
Kawasaki Heavy had 839,609,000 shares outstanding and ¥104.5bn in capital as of July 2, 2026, before the new stock is added to that base. July 22, 2026 is the date its balance sheet picks up the fresh ¥92.5bn.