Tokyo Stock Exchange Targets Asian Startups for Cross-Border IPO Initiative
Tokyo Stock Exchange has launched an initiative targeting Asian startups for cross-border IPOs, with 20 companies already participating, mainly from Singapore and Taiwan. The exchange projects over 20 cross-border listings in the next three years, significantly up from four deals in 2023-2025. Companies like Tonik Financial and KKday are actively considering Tokyo listings to access liquidity and build regional partnerships.
*this image is generated using AI for illustrative purposes only.
Tokyo Stock Exchange Inc. has launched a comprehensive initiative to strengthen its initial public offering market by attracting Asian startups for cross-border listings. The exchange is positioning itself as an alternative venue for companies seeking access to Japan's deep liquidity pools while avoiding geopolitical concerns in other regional markets.
Initiative Overview and Participation
The TSE's cross-border IPO program has already attracted significant interest from regional startups. Current participation and projections show strong momentum for the initiative.
| Parameter: | Details |
|---|---|
| Current Participants: | 20 startups |
| Primary Markets: | Singapore and Taiwan (50% of participants) |
| Target Timeline: | Next 3 years |
| Projected IPOs: | Over 20 cross-border listings |
| Historical Comparison: | 4 deals completed in 2023-2025 |
The exchange is providing comprehensive support through partnerships with banks, auditors, and venture capital funds across Asia to assist with fundraising and IPO preparations.
Market Context and Regional Competition
Tokyo's initiative comes amid a regional IPO boom, with India setting records and Hong Kong achieving multiyear highs in proceeds. TSE President Moriyuki Iwanaga emphasized the exchange's commitment to long-term value creation, stating the goal is to "have as many companies whose shares keep rising over a long period as possible and that's not limited to Japanese firms."
The exchange is targeting companies that may be too small for US markets while offering an alternative to Hong Kong amid geopolitical uncertainties. Mitsubishi UFJ Trust and Banking Corp., a key partner in the initiative, projects more than 20 cross-border IPOs over the next three years.
Company Interest and Strategic Benefits
Several companies have expressed concrete interest in Tokyo listings. Tonik Financial Pte., a Mizuho Bank-backed digital bank based in the Philippines, is actively exploring a Tokyo listing within the next two to three years. Founder Greg Krasnov cited access to liquidity and investor base as primary motivations.
KKday, a Taiwan-based online travel platform that generates approximately 50% of its revenue from Japan, sees strategic value in a Tokyo listing. CEO Ming Chen explained that listing in Japan would "build more trust with our suppliers, local partners," particularly given that "so many Asians love to go to Japan."
Atsushi Takahashi from Mitsubishi UFJ Trust and Banking Corp. highlighted the importance of post-listing liquidity, noting that it enables "management to engage with shareholders and stakeholders to raise corporate value."
Historical Performance and Future Outlook
The current initiative represents a significant expansion from TSE's previous efforts. The exchange's mid-term management plan from April 2022 to March 2025 targeted 20 cross-border listings but achieved only five deals, including notable companies like e-commerce platform Anymind Group Inc. and space technology company Astroscale Holdings Inc.
The new initiative reflects Tokyo's broader strategy to enhance its IPO pipeline while considering raising listing standards to ensure the growth quality of public companies. The focus on cross-border listings aligns with regional trends toward diversified capital market access and risk mitigation strategies.
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