Regular Report: 2011 Japan IPO Survey
Japan Venture Research Inc. (hereafter JVR, Akira Kitamura-CEO and Kohei Hayashi-CEO) conducted an analysis and compiled a summary on 22 Japanese VC-backed companies undertaking IPOs in the domestic emerging stock markets in 2011.
The number of Japanese VC-backed companies undertaking IPOs in the domestic emerging markets, which includes Tokyo AIM, more than doubled to 22 companies in 2011, up from 9 companies in the preceding year. The number of the IPOs had significantly declined every year since 2008, down to a single digit in 2009 and 2010. In 2011, the number recovered in the third and fourth quarters (with a little hiccup resulting from the March earthquake in the second quarter), showing a sign of overall recovery. The result by industry highlights the increase in the number of biotech and healthcare companies, which accounts for one third of the total, as well as the IPO by one environment-related company. The representations of these companies had a profound impact on the medians of various figures, creating new trends, such as accelerating IPO processes, increased pre-IPO funds, multiple VCs investing in one company. Overall, we still see negative signs including low initial P/E ratios, declining IPO funds and initial IPO market capitalization hovering at 2.2 times above pre-IPO market capitalization.
Japan Venture Research Co., LTD.