Japan Display (JDI) announced plans to raise JPY 55 billion (EUR 419 milion) in a share and asset sale to help boost its investment in new types of smartphone screens. The investment will go to developing the market for its 'Full Active' LCDs, which the company said are expected to see increased demand in H2.
The LCDs are designed to respond to growing demand for near-edgeless smartphone screens with full-screen (18:9) viewing. According to an earlier report from the Nikkei, JDI expects to see demand from Apple for a new iPhone model with a LCD screen later this year.
JDI said it's adapted its market view and now expects more stable demand for LCDs, also in devices other than smartphones. The OLED market is expected to grow slower than previously forecast, hence the decision to invest more in LCDs.
The share offering will consist of a third-party allotment of JPY 30 billion to around 30 institutional investors and JPY 5 billion to Nichia Corp. The shares will be priced at a 10 percent discount to the recent trading range, at JPY 178 each, and issued in the coming week. This is equal to nearly a third of JDI's total outstanding shares.
In addition, JDI will receive JPY 20 billion from the state investment fund and JDI's largest shareholder INCJ in exchange for its Nomi plant, which ceased production in December. INCJ will then contribute the plan as an in-kind investment in the Joled joint venture. This will avoid JDI having to take an impairment on the plant and reduce its restructuring costs.
