New market after TSE reorganization A system where deteriorating companies cannot continue to be listed on February 21 at 19:23
Two years later, the Tokyo Stock Exchange announced an outline of a plan to restructure TSE First Section and other areas to create a new market. Companies that have significantly deteriorated in performance are encouraged to grow by establishing a system that prevents them from continuing to be listed.
The Japan Exchange Group, which operates the Tokyo Stock Exchange, plans to reorganize the four markets of TSE First Section, TSE Second Section, Mothers and JASDAQ into tentatively named "Prime", "Standard" and "Growth". , Akira Kiyota announced the outline of the plan on the 21st.
According to this, companies currently in the First Section of the Tokyo Stock Exchange can move to the Second Section of the Tokyo Stock Exchange and maintain their listing even if their business performance deteriorates or stock prices are stagnant, but after reorganization, they will move to another market. There will be no mechanism to continue listing.
If the company no longer meets the listing criteria, it will be delisted in principle, and if it moves to another market, it will need to be reviewed and approved again. is.
The three new markets will move two years later, on April 1, 2022, and will decide by December next year which markets the listed companies will belong to.
CEO Kiyota stated, "We are designing the best system in consideration of the impact on companies and investors. I hope that companies will grow to withstand the reputation of society and investors through new markets."
New listing standards stricter than before
As the four markets of the Tokyo Stock Exchange are reorganized into three, the standards for new listings will also be revised.
According to an outline of the plan announced on the 21st, if a company is newly listed on the tentative "prime" market that will take over TSE First Section, more than 35% of the total shares issued by the company will go on the market, and "Market capitalization" calculated by multiplying the number of outgoing shares by the stock price must be at least ¥ 10 billion.
After listing, we will also clarify the criteria by which stock prices will fall due to worsening business results and the company will not be able to continue listing.
Currently, the First Section of the Tokyo Stock Exchange cannot be newly listed unless its market capitalization is more than 25 billion yen, but it was able to continue to be listed until its performance deteriorated and its market capitalization shrank to less than 500 million yen.
However, in the prime market, if the price goes below the 10 billion yen standard for a new listing, the listing will not be able to be maintained in principle and will be more severe than before.
In addition, a corporate governance code called the Corporate Governance Code is included in the conditions for listing, and the policy is to require companies to be responsible.