Here's another contribution to an article about IPO opportunities for SEA startups at the Tokyo Stock Exchange (TSE), featuring insights from my home country, Japan.
** A special thanks to DealStreetAsia journalist, Khamila Mulia, for this opportunity to discuss the topic of IPOs at the Tokyo Stock Exchange (TSE). **
https://lnkd.in/drEhPpbg
The article is well-crafted, highlighting the interest of Southeast Asian (SEA) companies in listing on the TSE for IPOs. Please check it out while it’s freely available for a limited time. While the TSE offers substantial benefits for non-Japanese companies, there are important factors to consider. The article sheds light on various aspects of listing at the TSE for SEA companies.
Here’s my thought regarding this topic:
The TSE is known for its high liquidity, attracting a diverse group of investors, from Japanese retail investors to foreign institutional investors. Now TSE is outgoing, proposing SEA companies (and other non-Japanese companies) to consider TSE for listing and public offerings.
Is the TSE an attractive market for startups or established companies from SEA looking to raise funds through an IPO? Yes, particularly if your business appeals to the investors active on the TSE—especially Japanese investors. (Otherwise, there's always NYSE/Nasdaq) However, this is where the challenge lies.
TSE has been proactive in its efforts to attract overseas companies. For example, they have made concessions regarding the language barrier—documentation for IPOs can now be completed in English. Additionally, listing costs and timelines have been reduced, which I believe is a step in the right direction.
To benefit from low-cost listings and, most importantly, liquidity at TSE, your shares must attract Japanese investors. This means actively engaging with them. However, it’s important to note that the Japanese public is not typically immersed in English-speaking environments daily, nor even on special occasions. (For instance, only 17% of the population holds a passport!)
To appeal to Japanese investors on the TSE, it might be necessary to align more closely with Japanese cultural and language expectations. Perhaps.
Overall, I recommend considering a TSE listing for SEA companies, provided you have a strong business presence or investor relations in Japan. Regardless of the discussion above and in the article, personally, I'm hoping that many SEA startups will consider the TSE as a strategic choice for their exit strategies.
FELLOW & SRAD, Singapore Institute of Directors FELLOW, Institute of Corporate Directors Malaysia
6dWell Done to Vertex & Congratulations to Mr Tay !