IPO is not giant exclusive: startups can be a different approach in Japan

the Tokyo stock exchange (TSE) is the world’s third largest exchange. With its unique advantage of Japan’s stock market to list the cost is lower than other markets, IPO price is more prominent, so there will be a very good conditions to attract small start-up companies listed here.

when a small start-up companies to raise money, they first think of is not an IPO. Entrepreneurs are usually listed on the stock market as the ultimate goal, they only after years of blood and sweat and tears of struggle, can be the gateway to the door. This kind of situation in the United States in several famous exchange, are more or less true, but the world exchange of several smaller start-up companies is friendly.

case analysis: the Tokyo stock exchange (TSE), its market capitalization ranked first in Asia, ranks the third in the world. From the beginning of the year to now, with 67% of tech IPO in TSE. And for those who come from Japan or other parts of the start-up companies, which provides a unique opportunity for them.

Mothers specifically for data with high growth potential of emerging companies index (gem), Japan. In Japan this year, about half of the IPO market in Mother.

(Mother is TSE, open up a new market, on the one hand, for a startup funding sources in the early development period, on the other hand is for investors with diversified investment products)

“in the early stages of entrepreneurship, you can through the IPO raised in Japan.” TSE, head of global listings department Hidetoshi Nagata explained, “in Japan, even if a small company also can attract investors.”

Nagata at a recent meeting in Hong Kong, he to startup the TSE. Founder of Aucfan Shuichi Takenaga and from nomura securities (global investment Banks) Kenichi Tsukamoto with Nagata also backed the TSE.

TSE from earlier this year to now have 72 IPO, has the ultra 64 clinch a deal amount last year. One of the biggest deals from Recruit, raise money of $2 billion. IT, biotechnology and the game market is a market in strong fields.

then, Nagata shows that through the Mother listed on the TSE is far cheaper than in competitive exchange, in terms of average, those in the former listed companies tend to have better performance. Listed on the Mother company, with 22% eventually become more well-known company, and became the TSE’s first section.

a novice you ready?

Takenaga stand for TSE, sure, he indicated that after the IPO on the TSE, the growing revenues Aucfan now stands at more than 40% of higher yields. Takenaga claimed that a company want to be listed, then it must reach $2 million in annual revenue. Start-up companies provide free products and services for the early market traction, before they have the funds to show strength, they need to use the power of traditional venture capital firms and angel investors.

Takenaga pointed out that in the Japanese stock market under the influence of lehman’s failure, he thought that Singapore market set back the development of his company for several years. “Even so, Japan market is still superior to Singapore market,” he said.

a startup early for IPO’s main advantage is that – it makes raising money more simple, can obtain higher visibility, enhance the confidence of the market, as well as offering more has the ability to expand in the future. Aucfan is in the last year’s IPO raised 700 million yen ($6 million).

home driven” stock market

in Mothers, Tsukamoto explained, the number of shares issued on the Japanese stock market far less than in other exchanges, for those who don’t want too early to give up this big efforts for start-up companies, it is important to a link. Nasdaq require companies to have at least 110 million shares, while the Mothers asked only 1000 shares will be listed.

he pointed out that the TSE another useful feature: Japan’s stock market is a typical family in the stock market. About four 5 of the market is composed of individuals or small investors, rather than institutional investors. Retail investors tend to be more easy to accept smaller companies.

this all sounds very good, but you should bear in mind that in any stock market is open to the quarterly earnings results, which means that everyone will know your company’s financial situation. In addition, the recent yen against the dollar in the lowest in seven years. Listed on the TSE will take more or less a year.

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