More Companies Will List in Japan This Month Than Ever Before




  • In Business
  • 2021-12-02 23:40:01Z
  • By Bloomberg
 

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

Most Read from Bloomberg

  • Reliving the New York Subway Map Debate

  • 'Ghost Signs' Haunt London's Reviving Neighborhoods

  • China Cash Flowed Through Congo Bank to Former President's Cronies

  • Automating the War on Noise Pollution

  • 'Pension Poachers' Are Targeting America's Elderly Veterans

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's end has been a factor, the 2021 figure has also been buoyed by growth in the number of IT startups. Ventures had also delayed listings during the pandemic, with new coronavirus cases in the country now near their lowest since the pandemic began. Nomura Corp. -- 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% on their debut Thursday.

Investors in the likes of Lovable Marketing Group Inc., Institution for a Global Society Corp., ExaWizards Inc. and Croooober Co., 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 startups and smaller firms. That index is down 14% in 2021, having surged during the pandemic in 2020.

2021 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 startup scene as an area in need of support, and has called for a rethink of the listing process, though he has been vague on details.

Kishida's panel on "new capitalism" has also raised the issue of Japan's lack of unicorns -- private firms valued at over $1 billion -- compared to the U.S. and Europe. It also noted the average age of Japan's largest firms, many of which were formed in the years after World War II such as Sony Group Corp. and Honda Motor Co., compared to more recent giants like Amazon.com Inc.

Another common complaint in Japan's startup scene is the tendency for firms 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 at 548 billion yen ($4.8 billion). That's far from the 3 trillion yen raised in 2018, a number inflated by SoftBank Group Corp. spinning out its mobile unit SoftBank Corp.

Read more: Japan to Review IPO Pricing Amid Criticism 'Pops' Are Too Big

Kishida has also called for special purpose acquisition companies to be allowed, and complained that initial public offering prices are being set too low and depriving entrepreneurs of funds. Japan Exchange Group Inc. will also replace the Mothers and Jasdaq markets with a Growth section in April, as part of its market segment reform.

Most Read from Bloomberg Businessweek

  • The Meme Stock

  • Paige Bueckers, a College Athlete Who's Cashing In

  • Karen Lynch, the Shot Caller at CVS

  • David Baszucki, Roblox's 'Builderman'

  • Charlie Penner, the Investor Reshaping Exxon From the Inside

©2021 Bloomberg L.P.

COMMENTS

More Related News

Asia braces for China data, oil nears 2021 highs
Asia braces for China data, oil nears 2021 highs

A holiday in the United States made for thin trading, but that did not stop Brent crude from extending its bull run toward last year's peak of $86.70 a...

Asian Stocks Mixed Before China Data; Bonds Slip: Markets Wrap
Asian Stocks Mixed Before China Data; Bonds Slip: Markets Wrap

(Bloomberg) -- Asian stocks were mixed Monday ahead of data expected to underline China's economic slowdown amid speculation that officials there will take...

Seoul: N. Korea fires projectile in 4th launch this month
Seoul: N. Korea fires projectile in 4th launch this month
  • World
  • 2022-01-17 00:26:56Z

North Korea on Monday fired at least one suspected ballistic missile into the sea in its fourth weapons launch this month, officials in South Korea and Japan...

Japan machinery orders rise more than expected, govt welcomes pick-up signs
Japan machinery orders rise more than expected, govt welcomes pick-up signs

Japan's core machinery orders rose for a second straight month in November, government data showed on Monday, a sign that corporate appetite for capital...

Oil Extends Gain After Weekly Advance on Tightening Market
Oil Extends Gain After Weekly Advance on Tightening Market

(Bloomberg) -- Oil extended gains after a fourth weekly advance as the market tightened and concerns about the impact of omicron eased.Most Read from...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business