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Japanese camera maker Olympus Corp. jumped as much as 16 percent, its maximum daily limit, following a report that revealed the company plans to sell shares to a strategic investor to fill a $1.3 billion hole in its financial statement, reports Bloomberg.

Citing the Nikkei newspaper, Bloomberg says the company hired financial advisers for a planned 100 billion yen ($1.28 billion) sale of preferred stock. Investors may include Sony Corp., Fujifilm Holdings Corp.,  Panasonic Corp., Innovation Network Corp. of Japan and Germany’s Siemens AG (SIE).

According to Bloomber, selling preference shares convertible into equity may let the company raise funds.

“Preferred shares are a bit better than common stock for investors as there’s no immediate dilution, even though they may be changed into common equity some day,” Mitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. told Bloomberg.

Akino says the report reassures investors that Olympus may get support from major Japanese firms and that this may improve its governance.

The stock reversed an earlier 3.8 percent decline to trade 150 yen, or 16 percent higher, at 1,065 yen as of 1:49 p.m. on the Tokyo Stock Exchange. Olympus was the biggest gainer on Japan’s benchmark Nikkei 225 Stock Average, which rose 0.6 percent. The endoscope maker also had the biggest climb on the MSCI Asia-Pacific Index.

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