An increasing number of Japanese companies are capitalizing on the globalization trend and strong yen to raise funds or acquire businesses in Asia. Some startups are now going public in South Korea and Taiwan to take advantage of simpler screening procedures at bourses for emerging companies.
They are also seeking funds from outside Japan because domestic investors are showing reluctance to bet their money on fledgling businesses, while time is of the essence for young firms in need of raising capital.
Food Discovery Inc., a provider of training courses for people aspiring to become food experts, is due to apply this year to list its shares on Kosdaq, a South Korean bourse for startups. In addition to acquiring much-needed funding, the company is going public to boost its name recognition.
Animation producer DLE Inc. plans to go public in Taiwan next June. It aims to find local business partners in hopes of eventually selling its creations in China. Online brokerage Click Securities Inc. initially aimed to go public in Japan and then toyed with the idea of listing on Kosdaq because proceedings would have been quicker there.
Food Discovery Inc., a provider of training courses for people aspiring to become food experts, is due to apply this year to list its shares on Kosdaq, a South Korean bourse for startups. In addition to acquiring much-needed funding, the company is going public to boost its name recognition.
Animation producer DLE Inc. plans to go public in Taiwan next June. It aims to find local business partners in hopes of eventually selling its creations in China. Online brokerage Click Securities Inc. initially aimed to go public in Japan and then toyed with the idea of listing on Kosdaq because proceedings would have been quicker there.
Other Japanese companies, including a restaurant chain and a technology firm, are also considering listing their stocks in Asian markets. More than 10 venture companies are expected to go public in Asia by the end of next year, a market watcher says. In Japan, Jasdaq reinvented itself Oct. 12 as one of the largest exchanges in Asia for emerging enterprises through the merger of the Hercules bourse and former Jasdaq market.
But Asian stock exchanges for up-and-coming firms such as Kosdaq and Singapore's Catalist may pose tough competition. They have been targeting Japanese firms, providing them with brochures in Japanese and holding briefings in Japan about how to go public on their markets. Meanwhile, the stagnant stock market in Japan and the yen's appreciation, which boosts the currency's purchasing power abroad, have led Japanese firms to make investments in Asia.
But Asian stock exchanges for up-and-coming firms such as Kosdaq and Singapore's Catalist may pose tough competition. They have been targeting Japanese firms, providing them with brochures in Japanese and holding briefings in Japan about how to go public on their markets. Meanwhile, the stagnant stock market in Japan and the yen's appreciation, which boosts the currency's purchasing power abroad, have led Japanese firms to make investments in Asia.
In August, industrial equipment maker Kito Corp. said it will buy an Indian crane maker as part of its effort to serve a growing number of Japanese manufacturers setting up shop in India. In early October, medical equipment maker Nipro Corp. announced the acquisition of a Chinese ampul producer with a view to boosting its presence in the rapidly growing Chinese market. Asahi Glass Co. plans to turn a Korean firm into a wholly owned subsidiary in the process of restructuring its cathode-ray tube display business. (The Japan Times)
