Dentsu Inc., a Japanese advertising company, would raise about JPY120.1 billion equivalent to US$1.2 billion in a public share sale. Dentsu acquired Aegis Group Plc and the sale would aid it in paying for the bid.

Dentsu would propose around 29 million stocks that it owns. It would also offer 8 million latest stocks to investors in Japan and abroad. The profits would be utilized to repay part of its JPY200 billion short-term arrears. Dentsu acquired the debt when it purchased Aegis in March. The information came today from a statement made by the Tokyo-based company.

Dentsu bought Aegis for GBP3.16 billion or US$4.8 billion. The said acquisition was part of Japan's largest agency's aggressive move as it vies with global firms like WPP Plc and Omnicom Group Inc.

"The stock market's recovery trend since last November is helping Dentsu to go for the sale, which will lead to an improvement of its capital base," chief fund manager at Tokyo's Ichiyoshi Asset Management Co., Mitsushige Akino, said. "Shares will probably react negatively on dilution concern."