IPOs Declining in Japan amid Slowdown in Tech Listings
Tokyo, Sept. 3 (Jiji Press)--The number of initial public offerings in Japan has been falling sharply, reflecting a slowing pace of new listings by software-related companies that have led IPO activity in the country. Companies are moving to postpone their IPOs amid financial market turmoil caused by the war in Iran, concerns that artificial intelligence could replace traditional software pr...
Tokyo, September 3 (Jiji Press)--Japan's initial public offerings (IPOs) are experiencing a significant decline, signaling a slowdown in tech company listings that have historically driven IPO activity in the nation. This trend is attributed to several factors, including financial market turbulence stemming from the Iran conflict, apprehensions surrounding the potential job displacement caused by artificial intelligence, and the increasing interest rates.
In the first half of the year, a mere seventeen companies went public on Tokyo Stock Exchange's primary Prime, Growth, and Standard segments, marking a roughly 30% decrease compared to the previous year, as reported by the TSE. Annual IPO activity has been subdued since reaching its peak of 123 in 2021, when favorable fundraising conditions were prevalent due to central banks' accommodative monetary policies to tackle the COVID-19 pandemic.
Notably, IPOs have plummeted notably on the TSE's Growth segment, which primarily caters to startups, since the year 2025. The performance benchmark for this segment, the TSE Growth Market 250 Index, has been on a downward trajectory since 2022, creating an unfavorable climate for IPOs.
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