Japan IPO Slump Deepens Despite Strong Debuts of Sake and Pet Food Firms.

Japan’s IPO market has struggled this year even as the broader market reached record highs, with most new listings trading below their debut prices. Reforms by the Tokyo Stock Exchange have boosted overall valuations but introduced stricter listing rules, discouraging new offerings. Investor focus has also shifted sharply toward artificial intelligence stocks, leaving smaller domestic firms with less attention. Before April, all seven IPOs this year had fallen below their opening levels, and the number of listings is expected to drop about 20% from 65 in 2025. Recent strong debuts have done little to change sentiment. Umenoyado Brewery jumped 75% on its first day, while Inuneko-Seikatsu rose over 30%. Analysts say tighter rules, including a 10 billion yen valuation requirement by 2030, raise fears of delisting, keeping investors cautious. -04-27/