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 products and businesses, and rising interest rates.

Seventeen companies went public on the Tokyo Stock Exchange's mainstay Prime, Growth and Standard sections in the first half of the year, down about 30 pct from a year before, according to the TSE.

Annual IPO activity has been lackluster since the number peaked at 123 in 2021, when fundraising conditions were favorable as countries eased monetary policies to combat the COVID-19 pandemic.

IPOs have declined particularly sharply on the TSE's Growth section for startups since 2025. The benchmark gauge for the section, the TSE Growth Market 250 Index, has trended lower since 2022, creating an unfavorable environment for IPOs.

[Copyright The Jiji Press, Ltd.]