(Adds details, share price)
TOKYO, Oct 31 (Reuters) -Tsusho Corp. , a Toyota Motor Corp. affiliate trading house, said on Tuesday it would raise up to $685 million through a new share issue to invest in facilities and operations.
Tsusho will issue 19.5 million new shares on the market and another 5.39 million shares to Toyota Motor, whose stake in the trading house will fall slightly to 21.5 percent after the share issue.
Toyota Tsusho may offer 1.95 million additional shares if demand is strong.
The 80.45 billion yen ($685.2 million) fundraising, lead-managed by Nomura Securities, would increase the company's outstanding shares by 8.2 percent. Toyota Tsusho said it plans to use the funds to further strengthen its auto-related businesses as the Toyota group aggressively expands overseas, while it would also invest to expand operations with growth potential such as the energy business.
The price of new shares will be decided between Nov. 13 and Nov. 16. Based on Toyota Tsusho's closing price on Tuesday, Toyota Motor would invest 18.5 billion yen in the affiliate.
Before the announcement, shares in Toyota Tsusho closed up 0.9 percent at 3,440 yen. The benchmark Nikkei average was up 0.29 percent. ($1=117.41 Yen)