Aug. 3--TOKYO -- Mizuho Financial Group Inc. said Monday it will raise a total of 529.2 billion yen through a public offering and third-party allocation of new shares, falling short of its original target of around 600 billion yen due to sluggish stock markets.

With the capital increase, Japan's second-largest banking group will see its capital adequacy ratio rising 0.9 percentage point from 10.55 percent at the end of March.

The total consists of about 494.7 billion yen it has raised through a public offering recently and 34.5 billion yen it will raise by selling new shares to Nomura Securities Co. on Wednesday.

Unlike many other rivals that succeeded in reporting profits for the April-June quarter, Mizuho said Friday it remained in the red with a group net loss of 4.49 billion yen on swelling bad loans and losses on derivatives contracts.

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