Kansai Electric Falls Most in Over 50 Years on Share Sale Plan

Kansai Electric Power Co. shares saw their biggest drop in at least 50 years after the Japanese utility said it plans to raise as much as ¥504.9 billion ($3.2 billion) from a share sale, fueling concerns about earnings dilution.

Kansai Electric tumbled 18%, its steepest fall since September 1974, when Bloomberg data first became available. A gauge of power companies led the drop on the Topix index, as peers sank on worries they may follow suit.

“It’s a bit of a surprise that the company decided to take the form of share sale” to raise capital, said Kazuhiro Sasaki, ...