Shares of Toshiba Corp <6502.T> dropped 6 percent on Monday after weekend media reports of a $5 billion capital raising plan triggered dilution concerns.

Media reported Toshiba plans to issue 300 billion yen ($3 billion) worth of new shares and sell 200 billion yen worth of subordinated bonds to banks to bolster its finances, weakened by its loss-making chip operations and tax costs.

A new share issue -- the first by the world's No.2 maker of NAND-type flash memory in 28 years -- would dilute share value by about 28 percent at Friday's closing price of 332 yen.

Toshiba said in a statement that the company is always looking for appropriate measures to strengthen its finances, but there is nothing to announce at this point.

Toshiba shares were at 312 yen in morning trade.

The stock opened down 6.9 percent after the Nikkei business daily and Kyodo news agency reported the fund-raising plan.

Toshiba also on Friday widened its net loss estimate by 25 percent to 350 billion yen after writing down 85 billion yen in deferred tax assets, causing its shareholder's equity ratio to more than halve from a year ago to 8.2 percent.

($1=99.13 Yen)

(Reporting by Sachi Izumi and Mayumi Negishi; Editing by Edwina Gibbs)