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Mazda set the price of shares in its $1.67 billion offering at ¥124 per share, roughly $1.53, on Monday. Reuters

Mazda Motor Corp., Japan's fifth largest car maker, set the price of a $1.67 billion share offering Monday that will help fund the construction of factories outside Japan, where exports struggle against a strong yen.

Mazda aims to use the money to build factories in Mexico, Russia and Southeast Asia that will begin production no later than March 2014. The company also plans to expand and improve facilities manufacturing components for their SKYACTIV high efficiency automotive technology and to increase funding for alternative fuel R&D.

The shares will be offered at a discounted cost of ¥124 ($1.53) per share. Out of a total of almost 1.1 billion shares, 24 percent will be offered to investors outside of Japan, primarily targeted at Europe, but will not be available in the United States or Canada.

Losses brought on by the strong yen and natural disasters in Japan and Thailand motivated the decision by the automaker to issue stock and pursue overseas development.

The Company will reinforce its business in emerging markets and establish a global production footprint, and the Company will revamp its income structure by heightening resistance to foreign exchange ratio fluctuations, Mazda said.

Mazda is forecasting a ¥100 billion annual loss due to the appreciation of the yen against major currencies over the course of 2011, reported Bloomberg. The strong yen has also reduced earnings at other Japanese auto manufacturers like Toyota and Honda.

Mazda's financial standing has temporarily worsened due to rapid changes in its business environment, including the continuing sharp appreciation of the yen since 2011, the unstable economic conditions such as the financial crisis in European countries, as well as large-scale disasters such as the Great East Japan Earthquake and the floods in Thailand, the company said in its initial announcement of the stock issuance,

Mazda stock closed at ¥128.00, Monday, up 0.79 percent. Mazda shares have dropped 13 percent since the decision to issue stock was announced on Feb. 22 due to fears of share dilution.