Toyota Tests Unique Stock to Draw Long-Term Investors
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To develop the cars of tomorrow, Toyota Motor Corp. is trying to create a new security aimed at investors willing to stick around for the ride.
Toyota said Tuesday it will sell as much as 500 billion yen ($4.2 billion) of new “Model AA” shares, named after its first passenger car. The unlisted stock will be sold for at least a 20 percent premium over common equity and restricted from trading for five years. The lure for investors will be a stepped-up dividend and option to sell the shares back at the issue price, or convert them into common stock.