Decline of 26.3% in Listings on Japanese Stock Exchanges from January to June
In the first half of 2025, the number of new listings on Japanese stock exchanges experienced a significant drop, falling by 26.3%. Only 28 new listings were recorded compared to the previous year's figure[1]. This decrease appears to reflect securities firms being more cautious in their assessment of companies seeking to go public, particularly after criticism of relatively small companies entering the market.
For instance, the Tokyo Stock Exchange's Growth section for startups saw new listings decrease from 34 to 18 in the first half of the year[1]. The trend is expected to continue throughout the year, with the number of new listings predicted to fall far below the previous year's total of 86[1].
Soichiro Saito of SMBC Nikko Securities stated that the decrease in new listings is due to securities firms more carefully assessing companies seeking to go public[1]. The decrease in the number of new listings may also be due to criticism of relatively small companies going public[1].
Despite the decline in new listings, one notable exception is JX Advanced Metals Corp., which debuted on the TSE's Prime section in March and saw its market capitalization reach 782.6 billion yen on a debut price basis[1]. The company's market capitalization topped the level on an initial public offering price basis[1].
In summary, the market environment in Japan for new listings has become more selective in 2025, resulting in a notable fall in IPO volume for the year. The decrease in new listings is primarily due to more cautious vetting by securities firms and criticism of small IPOs, rather than broader economic or external geopolitical factors (the impact of US tariffs was reportedly minimal)[1].
| Period | Number of New Listings | Change and Cause | |---------------------|-----------------------|------------------------------------------------| | Jan.-June 2025 | 28 | Down 26.3% due to more cautious vetting and criticism of small IPOs | | Full Year 2025 (est) | Far below 86 | Expected continued decline reflecting cautious market sentiment |
[1] Source: SMBC Nikko Securities, Tokyo Stock Exchange data.
In the first half of 2025, the decline in new listings on Japanese stock exchanges can be attributed to the increased caution shown by securities firms in their evaluation of companies seeking to go public, and critical scrutiny of relatively small companies entering the market. Moreover, the finance industry, brought about by these factors, is anticipating a significant drop in the number of new listings for the full year 2025, falling far below the previous year's total.
