As Japan accelerates its digital transformation and startup growth ambitions, one major opportunity has remained under-explored by global founders: the Tokyo Stock Exchange.

To help demystify the path to a Japanese IPO, I sat down with Ben Son, Deputy Head of APAC for the Tokyo Stock Exchange (TSE), based in Singapore. Our conversation covered the realities of Japan’s capital markets, how international startups can navigate them, and why now is the time to start paying attention.

Why Japan? A Stable, High-Trust Market for Growth

Japan is the third-largest economy in the world and boasts one of the most robust capital markets in Asia. The appeal of Japan’s IPO ecosystem lies in a few key attributes:

• Higher post-IPO stability – Nearly 50% of companies listed in Japan see their stock price increase after the IPO
• Robust liquidity – The TSE offers a stable shareholder base and active participation from institutional investors.
• Valuation premiums – Japan’s IPO market offers a relatively high PE multiple, making it attractive for companies seeking strong valuation.

Two Paths to Going Public in Japan

International startups have some flexibility when it comes to structuring a Japanese IPO. There are two main routes:

• Corporate Inversion
  The company reincorporates as a Japanese entity, gaining full access to domestic capital markets, index inclusion, and analyst coverage.
• Japanese Depositary Receipts (JDRs)
  A limited option available to companies from select countries, JDRs allow a foreign company’s shares to trade on TSE without changing domicile.

Each path has trade-offs. While corporate inversion offers the best liquidity and index eligibility, some companies prefer JDRs to maintain tax advantages in their home country.

The Barriers: What Founders Need to Prepare For

Despite Japan’s increasing openness, listing here comes with unique demands that foreign companies must plan for:

• Language and localization: IPO documentation and investor communications must be conducted in Japanese. This means founders need strong local partners or teams.
• Governance and compliance: Japan has rigorous disclosure standards. Founders must align their corporate governance and accounting practices with local expectations.
• Underwriter and analyst relationships: Major securities firms often favor domestic issuers. Foreign startups may need additional time to build trust and visibility with local financial institutions.

These hurdles can be navigated—but not without preparation. Fortunately, the TSE is investing in lowering the barriers. Son shared that the TSE Asia Startup Hub, based in Singapore, is actively working to support promising startups by connecting them with underwriters, legal counsel, and other local resources.

Why This Matters Now

Japan has set an ambitious national goal: to increase the number of unicorns 10x and grow startup investments to ¥10 trillion by 2027. The government is now encouraging institutional capital to invest in venture markets and providing IPO tax incentives to promote startup M&A.

This momentum is creating a unique window of opportunity for high-growth, international startups to access capital and expand in Japan. 

Key Insights

• Japan offers a uniquely stable and liquid IPO market, especially for companies with local revenue or expansion plans.
• Three listing options—corporate inversion, JDRs, and subsidiary IPOs—allow flexibility depending on your structure and goals.
• Strong local partnerships are essential for navigating compliance, language, and investor expectations.
• The Tokyo Stock Exchange is actively supporting international founders through its APAC hub in Singapore.
• Now is a pivotal moment, as Japan’s capital markets and policy shifts converge to welcome more global startups.

Curious about IPO opportunities in Japan? 

Join us in Kuala Lumpur.

📍Registration here 

Ben will be joining us at From Malaysia to Markets: Scaling, Funding & Exits Beyond SEA to break down what SEA founders need to know about Japan’s IPO landscape—plus insights on exits, international capital, and scaling strategies.

🗓️ April 29 | Kuala Lumpur
📣 Fireside Chats | 1:1 Meetups | Networking
🌟 30 handpicked founders.