Supporting IPOs for Companies in the Deep Tech and Biotech Industries
The Tokyo Stock Exchange (TSE) New Listings Department encourages the listing of companies in the deep-tech and biotech fields. TSE’s Deep Tech and Biotech Listing Consultation Desk provides support for these types of companies, such as research and development companies (deep tech companies) that aim to develop new markets by utilizing new technologies in cutting-edge fields such as space, materials, and healthcare, as well as drug discovery-related biotech companies. This is based on whatever stage each company is at, so that they can achieve an initial listing after smooth preparations.
(note)
- ･On December 16, 2022, the name was changed from "Biotech & Life Science Listing Consultation Desk" to "Deep Tech & Biotech Listing Consultation Desk."
This desk is readily available to anyone at any time for various types of consultations, not only from companies preparing to list, but also those that are considering listing and market professionals supporting those companies.
We also accept consultations from companies in the early stages of their business or product development. We will carefully answer your questions regarding listing examination criteria and listing rules, for example.
Please Contact Us with Any Questions You May Have
Q. What are the key things to think about when preparing for listing?
A. TSE has compiled New Listing Guidebooks to provide reference information in preparation for listing.
We are happy to explain the contents of the guidebooks, including the thinking behind them, so please contact the Consultation Desk.
Q. Do you accept questions that are not related to deep tech or biotech, but on how to prepare a business for listing in general?
A. Please feel free to contact us for an explanation of the listing system in general, including the process leading up to the IPO.
Q. May I consult with the Consultation Desk regarding an IPO in the following situations?
- We are interested in going public in the future, but have not yet started any practical discussions.
- We are not sure if our company would be classified as "deep tech."
- We are still in the research and development stage of a new technology, and are still uncertain on the success of development and how the business model will look.
- Our business model is not drug discovery-related.
- We are in the basic research stage and do not know if we can go to the pre-clinical stage at this point.
A. We look forward to hearing from you.
Q. May a venture capitalist go directly to the desk for consultation? Do we need to be accompanied by a company considering listing or securities firm?
A. Anyone is welcome to contact us. Please contact us directly, whether you are accompanied by a company or securities firm or not.
Approaches and Examination Points for Listing of Upfront Investment Type Biotech Startups
In the New Listing Guidebook for the Growth Market (Q&A 2. Other (1) Drug Discovery & Development Business), TSE provides points that would usually be considered important in the examination, especially for drug discovery pipeline-type biotech businesses that require a long time for investment payback (i.e., a business model that aims for a comprehensive process from seed discovery to development and future sales).
On the other hand, with the diversification of product development such as with regenerative medical products and devices, for example, TSE sees biotech startups as including upfront investment type companies with a wide range of business models that require a long time to recover investment, not limited to drug-discovery pipeline companies. Furthermore, some people involved in the listing of biotech startups have pointed out that it is important to clarify TSE's thinking based on case studies and other examples, as there can be misunderstandings that the examination points listed in the "New Listing Guidebook for the Growth Market" are absolute requirements.
In response to this, "Approaches and Examination Points for Listing of Upfront Investment Type Biotech Startups" clarifies the generic "Approaches and Examination Points for Listing" to help biotech startups to prepare for listing based on their respective business models, and provides examples of the kinds of cases TSE would expect to see.
In reality, the examination is based on the business model and individual circumstances, so there may be cases in which a listing is approved even where the situation differs from these examples. There may also be cases where listing is not approved even where the situation is the same as one of the examples.
If you have any questions regarding individual cases or the contents of this document, please contact the Deep Tech & Biotech Listing Consultation Desk.
(Reference) For General Investors (Information on Industries/Sectors with Distinctive Business Risks, etc.)
(Reference) Ministry of Economy, Trade and Industry: Study Group for Encouraging Dialogue between Biotech Venture Businesses and Investors
Contact
Deep Tech & Biotech Listing Consultation Desk, New Listings Department, Tokyo Stock Exchange, Inc.
E-mail:ipo@jpx.co.jp
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