Japanese startups, IPOs set for boost with unlisted-company platform
Japan's Financial Services Agency has registered a new platform, Smartround Securities, to facilitate the secondary trading of unlisted company shares. This initiative aims to increase liquidity for startups and improve corporate governance through better disclosure requirements.
Why it matters
This move represents a significant regulatory shift in Japan's private market, potentially making it easier for startups to raise capital and for investors to exit positions.
Japan's startup and initial-public offering scenes may get a boost from a new trading platform that will help unlisted companies raise capital.
Investors have had few options to cash out besides IPOs or acquisitions by third parties. But earlier this month, the Financial Services Agency announced that it has registered Smartround Securities as a brokerage for secondary market trading of unlisted shares, as part of efforts to broaden private markets and attract more investment in domestic startups.
Giving investors a more efficient way to buy and sell shares should make it easier for capital to reach growing businesses, said Sylvain Thieullent, chief executive officer of Horizon Trading Solutions.
"Companies come to the public market better prepared, ultimately improving the quality of Japan's IPO pipeline," he said.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in