TOKYO, Dec. 12, 2017 /PRNewswire/ - In the last month of this year, 23 companies intend to go public in Japan, which represents the highest figure in three years confirms Mizuho DKB Brokerage. This trend is consolidated as more investors show interest in startups.
Mizuho DKB Brokerage research department has noted that in annual terms, the number of companies organizing IPOs rose by 9 for December, which is the highest since the same month of 2014, when the indicator was 28. There are many companies that show up given the favorable conditions in the startup space.
On Wednesday, the Tokyo Stock Exchange gave the green light to a user-car exporting service that will go public in the second section of the exchange on December 26.
The list of companies that will have their IPOs in December includes diverse companies from packaging delivery services, automotive parts, sewing and wash processing apparel, and advertising companies.
Michael Green, Head of Corporate Trading at Mizuho DKB Brokerage commented on the rise of IPOS.
"Today, investors show more interest in startups and new technologies. There is a hype related to blockchain technology or artificial intelligence. Though there is no direct link between these and December's IPOs, the new technologies increase the interest for startups in general."
Key researchers at Mizuho DKB Brokerage commented that within 2017, 91 startups went public on the Tokyo Stock Exchange, with December accounting for around one quarter.
In the previous two years, the concentration of initial public offerings in the last month was much lower; the effect was visible in 2016 when 14 companies went public in December, which represented only 17% of the whole year.
"In the coming months, this trend may show steady growth," added Chris Hunter, Director of Corporate Equities at Mizuho DKB Brokerage.
It seems that the Tokyo Stock Exchange will require securities underwriters to encourage the ease of the IPO concentration in December.
About Mizuho DKB Brokerage: Mizuho DKB Brokerage (MDB) is a leading global wealth management company that services the needs of private individuals and corporate institutions. Headquartered in Tokyo, Japan since 2004 with a research department situated in Shanghai, Mizuho DKB Brokerage has accumulated over $6.7 billion U.S Dollars of assets under management.
SOURCE Mizuho DKB Brokerage