Overview of IPO

Listing on Tokyo Stock Exchange

Initial Listing

This refers to a company's first listing on the TSE market. When an unlisted company lists on the market, it is referred to as an "IPO (Initial Public Offering)" or "Direct Listing."
Additionally, the listing of companies already listed on another exchange is referred to as "technical listing." Technical listings are subject to examination based on the same criteria used for IPOs.

TSE operates five markets of the First Section, Second Section, Mothers, JASDAQ and TOKYO PRO Market.

Market Structure

First Section and Second Section

The First and Second Sections represent the main boards of TSE where leading large and second tier Japanese and foreign companies are listed. Especially the First Section is viewed as one of the top rank markets in terms of the size and liquidity, as foreign investors account for a large portion of equity trading. The First and Second Sections are collectively referred to as the "Main Markets."

Mothers

Mothers offers a trading market for companies with growth potential which aim to be reassigned to the First Section in near future. Thus TSE requires applicants to demonstrate high growth potential. Whether an applicant has growth potential or not shall be assessed and determined by lead underwriters on the basis of its business model or business environment. As the objective of Mothers is to offer financing opportunities for many companies with growth potential, Mothers has no restrictions on the size or business category of applicants. After successfully listing their stock on Mothers, many have satisfied the criteria for reassignment to the First Section and listed their stock on the First Section.

JASDAQ

JASDAQ is a market characterized by the three concepts of (1) reliability, (2) innovativeness and (3) region and internationalization. JASDAQ is split into the "Standard" market for growth companies with a certain size and business performance and the "Growth" market for companies with stronger future growth potential and unique technologies or business models.

TOKYO PRO Market

TOKYO PRO Market was established based on the "Professional-oriented market system" introduced in an amendment to the Financial Instruments and Exchange Act in 2008. In TOKYO PRO Market, exchange-approved J-Advisers conduct listing examination of prospective companies and offer post-listing support in place of the exchange.
Please click here for more details regarding the market.

TOKYO PRO Market

IPO Companies Size (2015-2017)

IPO Companies Size