Japanese IPOs – BCCJ member view in the Nikkei Veritas

The following post is a basic English translation of an article featured in the Nikkei Veritas on November 24 2019

SUCCESSFUL IPO GROWTH IS RECEIVING OVERSEAS ATTENTION

Against a backdrop of monetary easing in Japan, optionality around raising money for unlisted/private companies is diversifying. The current investment environment is such that, instead of rushing to issue equity, companies can wait until their business is on track before going public. The result of this is an impression of an increase in successful IPOs.

A key factor that we (STJ) focus on in our IPO consulting is the growth potential of the company. For example, High growth was anticipated of Sushiro Global Holdings (re-listed in 2017), who were increasing their number of restaurants across Japan, and had impressive customer responses. Similarly, the fibre optic networks of Arteria Networks (IPO in 2018), were expecting a large increase in demand.

Recently, we have been receiving an increasing number of inquiries from institutional investors who want to know whether there are any “good IPOs” in the pipeline. The Rugby World Cup hosted in September to November of this year provided an opportunity for many institutional investors to visit Japan.

We also have the Tokyo Olympics/Paralympics lined up for next year.  As the third largest IPO market in the world, we expect Japanese IPO activity to continue into the near future.

 

By Chris Wells
Representative Director, STJ Advisors

(Nikkei Veritas, November 24^th, 2019 | Page 11)

We also have the Tokyo Olympics/Paralympics lined up for next year.  As the third largest IPO market in the world, we expect Japanese IPO activity to continue into the near future.

 

By Chris Wells
Representative Director, STJ Advisors

(Nikkei Veritas, November 24^th, 2019 | Page 11)