A pedestrian walks past an electronic quotation board displaying the closing share prices of the Tokyo Stock Exchange on Friday in Tokyo. AFP
A pedestrian walks past an electronic quotation board displaying the closing share prices of the Tokyo Stock Exchange on Friday in Tokyo. AFP
A pedestrian walks past an electronic quotation board displaying the closing share prices of the Tokyo Stock Exchange on Friday in Tokyo. AFP
A pedestrian walks past an electronic quotation board displaying the closing share prices of the Tokyo Stock Exchange on Friday in Tokyo. AFP

Business

Markets

Japan to mark record number of company listings in December

This year, as a whole, is set to see the most listings in 15 years in the country

Bloomberg

December 04, 2021

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While Japan’s stock market might have had an unassuming year overall, one sector is running red-hot: new listings.

December is set to see the most companies list in a single month in Japan, with a total of 32 firms due to go public before the end of the year, according to data compiled by Bloomberg. That would top the 31 firms that went to market in December 2005.

While a rush by companies to file listing applications by year end has been a factor, the 2021 figure has also been buoyed by growth in the number of IT start-ups.

Ventures had also delayed listings during the pandemic, with new coronavirus cases in the country now near their lowest since the pandemic began.

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Nomura – no relation to Japan’s largest brokerage – a more than 60-year-old maker of packaging for the food industry, kicked off proceedings in December. The shares fell nearly 20 per cent on their debut on Thursday.

Investors in the likes of Lovable Marketing Group, Institution for a Global Society, ExaWizards and Croooober, all of which are set to list before the end of the year, will hope for a better performance.

Almost all the companies will debut on the Mothers market for start-ups and smaller firms. That index is down 14 per cent this year, having surged during the pandemic in 2020.

This year, as a whole, is set to see the most listings in 15 years in Japan.

Yet, changes are likely to be on the way: new Prime Minister Fumio Kishida has highlighted Japan’s start-up scene as an area in need of support and has called for a rethink of the listing process, although he has been vague on details.

Japan’s pavilion at Expo 2020 Dubai promises visitors an immersive experience that is hoped will leave them eager to visit the East Asian country. All photos: Victor Besa/The National.
Japan’s pavilion at Expo 2020 Dubai promises visitors an immersive experience that is hoped will leave them eager to visit the East Asian country. All photos: Victor Besa/The National.
An exhibition of tiny figurines tells the stories of Japan’s space exploration efforts, food scene and passion for anime.
An exhibition of tiny figurines tells the stories of Japan’s space exploration efforts, food scene and passion for anime.
The figurines area tells the story of Japan’s space exploration efforts, food scene and passion for anime.
The figurines area tells the story of Japan’s space exploration efforts, food scene and passion for anime.
Most of the exterior is covered in Japanese origami shapes, which symbolises respect shown to other through Japanese art of origata gift-wrapping.
Most of the exterior is covered in Japanese origami shapes, which symbolises respect shown to other through Japanese art of origata gift-wrapping.
Japanese innovation is not solely about high-end technology; it has drawn inspiration from both nature and traditional culture. Visitors can explore modern Japan and its future through a series of cute, elaborate miniatures using day-to-day objects.
Japanese innovation is not solely about high-end technology; it has drawn inspiration from both nature and traditional culture. Visitors can explore modern Japan and its future through a series of cute, elaborate miniatures using day-to-day objects.
Expo 2025 will be held in Kansai and visitors to Japan's Expo pavilion in Dubai will be shown how ideas, actions, and challenges of people from around the world can come together.
Expo 2025 will be held in Kansai and visitors to Japan's Expo pavilion in Dubai will be shown how ideas, actions, and challenges of people from around the world can come together.
A tour of the Japan Pavilion at Expo 2020 site. Architecture by Yuko Nagayama/NTT Facilities.
A tour of the Japan Pavilion at Expo 2020 site. Architecture by Yuko Nagayama/NTT Facilities.
Explore modern Japan and its future through a series of cute, elaborate miniatures using day-to-day objects.
Explore modern Japan and its future through a series of cute, elaborate miniatures using day-to-day objects.
Expo 2025 will be held in Kansai and visitors to Japan's Expo pavilion in Dubai will be shown how ideas, actions, and challenges of people from around the world can come together.
Expo 2025 will be held in Kansai and visitors to Japan's Expo pavilion in Dubai will be shown how ideas, actions, and challenges of people from around the world can come together.
Nagayama Yuko, the architect of the pavilion, said she used one of the Expo’s themes, ‘connecting’, as inspiration for the design.
Nagayama Yuko, the architect of the pavilion, said she used one of the Expo’s themes, ‘connecting’, as inspiration for the design.
Visitors to the Japanese pavilion will walk through an infinity mirror room which juxtaposes their own images with those depicting social and environmental challenges facing the world today.
Visitors to the Japanese pavilion will walk through an infinity mirror room which juxtaposes their own images with those depicting social and environmental challenges facing the world today.
Elaborate miniatures using day-to-day objects feature in the Japanese pavilion.
Elaborate miniatures using day-to-day objects feature in the Japanese pavilion.

Mr Kishida’s panel on “new capitalism” has also raised the issue of Japan’s lack of unicorns – private firms valued at more than $1 billion – compared with the US and Europe. It also noted the average age of Japan’s largest firms, many of which were formed in the years after the Second World War, such as Sony Group and Honda Motor, compared with more recent giants like Amazon.

Another common complaint in Japan’s start-up scene is the tendency for companies to list too early.

While December is set to be a record month, the total amount raised by companies that have listed or priced this year is 548 billion yen ($4.8bn). That’s far from the 3 trillion yen raised in 2018, a number inflated by SoftBank Group spinning out its mobile unit SoftBank.

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Updated: December 04, 2021, 6:03 AM`
MarketsJapan