The planned flotation, one of the biggest in Japan in recent years, is being closely watched as a test of investor appetite for financial shares, following recent turbulence on global markets.
Sony Financial Holdings said it had lowered the offer price to between 380,000 yen and 400,000 yen ($3,300 and $3,500) a share, making the total sale worth up to ¥320 billion, down from a previous target of ¥332 billion.
The move came amid growing jitters about problems emanating from the US subprime mortgage sector, and after British lender Northern Rock was forced to seek a central bank bailout due to financial difficulties.
Sony aims to list the business, next month, in hopes of raising cash to reinvest in the recovering group's core electronics business.
The unit, the holding company for Sony Life Insurance Co., Sony Assurance Inc., and Sony Bank, said it would set the flotation price October 1, after assessing investor demand.
Sony could sell as much as 36.5 percent of Sony Financial.
The electronics giant will float 725,000 shares in the unit, while the subsidiary, itself, will also sell 75,000. Sony could also sell an additional 70,000 shares, which would raise the value of the deal to ¥348 billion.
The stock market flotation will be the biggest since once-failed lender Aozora Bank's initial public offering in November.
Sony's financial business accounts for less-than-8 percent of the total revenue for the iconic Japanese company, whose interests range from PlayStation 3 video game consoles to liquid display televisions, movies, and music.
Sony, which is most famous for creating the Walkman, has pledged to devote more resources to innovation, after years of lagging behind rivals such as Apple with its iPod and Nintendo with its Wii.
Japanese banking shares fell heavily Tuesday, amid renewed fears of a global credit crunch after Northern Rock customers rushed to withdraw their savings when the lender was forced to seek a bailout from the Bank of England.
Mitsubishi UFJ Financial fell ¥50,000 or 4.8 percent to 990,000 and Resona Holdings lost ¥16,000 or 8.0 percent to 185,000, while Mizuho Financial slumped ¥52,000 or 7.9 percent to 605,000.
"Once US investment banks release their earnings, the impact of the subprime market trouble will become clearer, and the market may start regaining confidence," said Kazuhiro Takahashi, a manager at Daiwa Securities SMBC.
Major US investment banks are due to report quarterly earnings, this week.
© 2007 Agence France-Presse
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