Interim issue - Interim publication

Japanese: 中間発行 - ちゅうかんはっこう

When a corporation issues new shares to increase its capital, the issue price of the new shares is set at a price halfway between the market price and the face value. A capital increase using this method is called an interim issue (or simply an interim issue). Since an interim issue issues new shares at a price lower than the market price, it becomes a shareholder allotment under the provisions of the Commercial Code (Article 280-2), which strongly restricts the issuance of new shares at a particularly favorable price to persons other than shareholders. In Japan, Sakata Shokai was the first to carry out an interim issue of a shareholder allotment in September 1961, in parallel with a shareholder allotment par value capital increase.

Source: Heibonsha World Encyclopedia, 2nd Edition Information

Japanese:

株式会社は増資をするに際して新株を発行するが，新株の発行価格を時価と額面の中間のある価格に定めて行う発行方法をいい，この方法による増資を中間発行増資(単に中間発行ともいう)という。中間発行増資は時価よりも低い価格で新株を発行するので，株主以外の者にとくに有利な価格で新株を発行することを強く制限した商法の規定(280条ノ2)により，株主割当てとなる。日本では1961年9月に阪田商会が株主割当額面増資と並行して株主割当中間発行増資を行ったのが最初である。

出典　株式会社平凡社世界大百科事典第２版について　情報

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