Toshiba Corp. said Friday it has applied for a return to the Tokyo Stock Exchange's First Section, nearly three years after its demotion to the Second Section following massive losses at its bankrupt U.S. nuclear unit.
The TSE's review process for Toshiba's reinstatement is expected to take several months. If the application is approved, it would make it easier for the Japanese conglomerate to raise capital for future investments.
In August 2017, Toshiba shares were demoted after the company's liabilities exceeded its assets in fiscal 2016 on massive write-downs at its U.S. nuclear power business, failing to meet the bourse's listing standards.
In February, the TSE began requiring Second Section companies to have proper financial statements for the past two years along with auditor opinions to make a request for listing on the First Section, shortening the period from five years.
To rebuild its operations, Toshiba has sold its semiconductor and consumer electronics businesses and focused on operations such as social infrastructure building. In the future, the company plans to actively invest in areas such as the Internet of Things.
But the TSE's review process for the company may be affected by a new accounting scandal that came to light in January at a Toshiba subsidiary engaged in the IT business.
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