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Japan’s IPO fundraising hits lowest level in 14 years
First-time IPOs fell to 32 through the end of September, the lowest nine-month tally since 2012, as regulatory changes and a thin AI-related listings pipeline reduced supply.
Japan’s initial public offering fundraising is cooling sharply, even as dealmaking remains strong elsewhere in Asia, after regulatory changes and fewer artificial intelligence-related companies reduced the listings pipeline, according to Bloomberg-compiled data cited by LiveMint Markets.
The number of first-time offerings fell to 32 through the end of September, the lowest nine-month tally since 2012. LiveMint Markets also noted that some companies, including taxi app provider Go Inc., fell to a four-year low.
Companies along the AI supply chain have helped fuel IPOs globally, but Japan has not matched the startup wave seen in markets such as China, LiveMint Markets said. Some would-be issuers were also deterred by the Tokyo Stock Exchange’s plan to raise listing standards for firms to remain in its startup section.
Masahito Watanabe, head of the IPO department at Mizuho Securities Co., said more companies decided it was not the time to go public, and that preparing candidates for a listing typically takes at least two to three years, according to LiveMint Markets.