https://www.jpx.co.jp/english/equities/follow-up/b5b4pj000004yqcc-att/dh3otn000000mgt6.pdf

The Tokyo Stock Exchange’s Listing Department outlined future measures for the Growth Market on December 10, 2024 (their presentation attached). The focus is on enhancing market functionality by promoting stricter listing criteria, encouraging mergers and acquisitions (M&A) among growing companies, and fostering core companies that represent Japan. The measures aim to ensure companies achieve sustainable growth post-listing and to create a more robust market environment.

The most disappointing chart in this document is the performance graph on page 14.

After the market re-segmentation in 4/22, the share prices of the Prime and Standard Markets have appreciated by 38.1% and 21.7%, respectively, as of 10/31/24.  Unfortunately, the share prices of the Growth Market are down by 23.2%.

However, I am encouraged by the document’s tone, as the TSE is addressing the apathy of newly listed management towards growing their business after the IPO ( the IPO goal). Also, the very last page (page 31) mentions that TSE is compiling a list of companies listed on the growth market that wish to have more active contact from institutional investors and will publish the list on 1/25/25.

I believe it will be worthwhile contacting these stocks (after checking their financials).