Start from 3 new markets such as TSE "Prime Market"

The first section of the Tokyo Stock Exchange will be abolished on the Tokyo Stock Exchange, and transactions will start in three new markets such as the "prime market."

The challenge is to attract investment from around the world and lead to the growth of the Japanese economy.

The Tokyo Stock Exchange will abolish the first and second divisions and Mothers, which has many start-up companies, and reorganize them into three markets: prime, standard, and growth, and will start trading on the 4th.

With the aim of attracting investment funds from home and abroad, we have tightened the listing standards from the first copy in order to attract companies that are expected to grow more in the prime market and are internationally competitive.

On the other hand, most of the first-part listed companies have been prepared to move to the prime market by submitting a plan for improvement even if they do not meet the standards. Has just moved to the prime market.

Competition among exchanges around the world has intensified, and TSE has widened the gap with New York in terms of market capitalization, which indicates the value of all listed companies, and has been overtaken by Shanghai, China, and the sense of crisis about land subsidence is increasing.

The challenge is whether we can attract investment from around the world and lead to the growth of the Japanese economy as we aim to start a new market.

Reorganized into "Prime", "Standard" and "Growth"

So far, there are four markets on the Tokyo Stock Exchange, with 2177 companies listed on the First Section of the Tokyo Stock Exchange, 475 companies listed on the Second Section, 432 companies listed on Mothers, and 686 companies listed on JASDAQ.

This has been reorganized into three new markets: the prime market, the standard market, and the growth market.

The prime market is required to have a high level of corporate governance as well as higher growth, and we aim to attract companies that can compete in the world.

More than 80% of 1839 companies have moved from the first copy.

The standard market is expected to be a company that can be expected to grow steadily, although its market capitalization is not large compared to prime.

1466 companies have moved from four markets, including more than 330 companies moving from the first copy.

The growth market is positioned as “for start-up companies”, where high growth can be expected but the track record is poor and the risk is relatively high.

465 companies will move from Mothers and JASDAQ, and one company will be newly listed on the 4th.

Even one copy is a "standard" company ... Why?

Some companies listed on the first section have dared to move to the standard market while meeting the listing criteria of the prime market.

Headquartered in Chuo-ku, Tokyo, Mitsuuroko Group Holdings is engaged in the oil and LP gas sales business.

Last September, I submitted an application to the Tokyo Stock Exchange to select the prime market, but after that I reviewed the policy and selected the standard market.

In the prime market where large global companies are listed, there was concern that investors would not pay attention to the company because it is relatively small, and the listing standards are looser than in the prime market. We decided that a standard market would allow us to make bold investments and lead to the growth of the company.

The company wants to make a major shift in its business structure by allocating limited management resources to investment in new fields such as renewable energy and batteries in order to respond to the drastic changes in the business environment such as decarbonization.

Kohei Tajima, President of Mitsuuroko Group Holdings, said, "Because there are a lot of issues to be dealt with and we are in an important phase, we will take bold measures while making some big management decisions here. To that end, in an easy-to-move market. I thought it would be better if I could concentrate on my business. I would like to boldly change the business structure. "

What are your efforts to achieve the corporate standards of “transitional measures”?

Some companies that do not meet the listing criteria but have taken advantage of transitional measures to move to the prime market are moving to step up their efforts to meet the criteria.

Headquartered in Fukuoka City, Pietro, which manufactures and sells food products and is engaged in the restaurant business, has been listed on the First Section of the Tokyo Stock Exchange.

The market capitalization of stocks on the market was 4.9 billion yen as of the end of June last year, which is less than half of the listing standard of the prime market, which is 10 billion yen or more.

However, considering the benefits of being able to raise funds from a wide range of investors, we decided to take advantage of transitional measures to move to the prime market.

The company has decided to focus on providing information to IR = shareholders, saying that it is essential to appeal to investors in order to achieve the standard by the end of March 2026, four years later.

Specifically, last month, we established a new department specializing in IR, increased the number of interviews with institutional investors four times as much as before, held company information sessions for shareholders in Tokyo, etc. We are also considering the publication of the medium-term management plan.

We plan to work on strengthening the food business in the United States and improving productivity by consolidating factories.

Yasuyuki Takahashi, President of Pietro, said, "I haven't been enthusiastic about IR until now, but I will reflect on this and strengthen communication with investors. There is considerable preparedness and pressure to achieve the standard. I want to sow more seeds of business than ever before and start at a rapid pace. "

Large difference from TSE's market capitalization NY Stock Exchange

According to the World Federation of Exchanges, the market capitalization of the entire exchange, which is the product of the number of shares issued by listed companies and the stock price, is more than $ 6.1 trillion on the Tokyo Stock Exchange as of the end of February.

The world's top New York Stock Exchange is over $ 26.1 trillion, a big difference.

The Shanghai exchange is over $ 7.8 trillion, surpassing Tokyo, and the Hong Kong exchange is over $ 5.2 trillion, catching up with the Asian market.