Japan’s dour IPO market unlikely to improve despite sizzling debuts of sake, pet food firms
TOKYO, April 27 : Sparkling debuts on the Tokyo bourse by a sake brewery and pet food maker last week are unlikely to revive a moribund market for new stock listings in Japan as investors remain fixated on the artificial intelligence boom. Shares of Umenoyado Brewery surged 75 per cent on their first day of trading on Friday, while Inuneko-Seikatsu traded more than 30 per cent higher than its IPO price on Monday. Even as the Japanese stock market surged to successive record highs this year, initial public offerings have disappointed, with new listings largely trading below their debut price. Reforms pushed by the Tokyo Stock Exchange (TSE) have helped valuations jump for the overall market, but stricter listing criteria have put a damper on the IPO sector. At the same time, enthusiasm over the red-hot artificial intelligence sector has sapped interest in IPOs, which are typically small companies that are focused on domestic demand. “The IPO boom has faded because retail investors’ interest is largely focused on AI stocks. We do not see those …

