Yamaha Motor Co. is raising funds in a bid to bolster its research into evolving technology, including electric-powered motorcycles and more environmentally friendly outboard marine motors.
The manufacturer recently announced its intention to sell an additional 55,000 shares to raise $805 million. The announcement of the public offering of shares caused the company’s stock to drop substantially on the Toyko Stock Exchange, as Yamaha’s stock declined more than 9 percent, according to a Bloomberg report on Monday.
“Investors aren’t happy about the dilution of the stock,” Fumiyuki Nakanishi, a senior strategist at SMBC Friend Securities Co. in Tokyo, said in the Bloomberg report.
Yamaha, in an online press release, noted some of the additional funding would go toward:
- Electric-powered motorcycles, which could be re-released in the Japanese market and later in the Taiwanese and European markets;
- Electrical power-assisted bicycles for the Japanese market and in the rapidly growing European market; and
- Developing the technology for next-generation, four-stroke outboard motor models that are up to 30 percent more efficient in their fuel use.
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