Japan’s ANA shares fall on report airline plans to raise $1.9 billion

ANA Holdings Inc’s shares dropped 4.2% on Tuesday after reports that Japan’s biggest airline plans to release new shares worth around $1.9 billion.

ANA will launch its first share sale since 2012. The issuance is anticipated to raise almost 200 billion yen.

In a statement released on Tuesday, the Japanese airline said nothing was decided on a new share sale.

Airlines worldwide are struggling as the coronavirus pandemic brought a stop to the travel industry. Although Japan has not been hit as hard as Europe and the United States, itys travel industry is still suffering.

ANA’s stock fell 1.9% compared to a 2.8% gain in the benchmark Nikkei 225 Stock Average. 

Earlier this month, ANA’s domestic rival Japan Airlines Co Ltd said it would raise $1.8 billion in a share sale to strengthen its finances.