Japan deal drought cuts IPO fundraising to lowest in 14 years

The number of initial public offerings in Japan this year fell to 32 through the end of September, the lowest nine-month tally since 2012. | JOHAN BROOKS

Oct 9, 2026

Fundraising through initial public offerings (IPOs) in Japan is drying up, in contrast to a dealmaking boom across Asia, after regulatory changes and a dearth of artificial intelligence related companies depleted up the listings pipeline.

The number of first-time offerings fell to 32 this year through the end of September, the lowest nine-month tally since 2012, according to Bloomberg-compiled data. The amount of funds raised by companies including taxi app provider Go slid to a four-year low, even as fundraising surged in the rest of Asia.

While companies along the AI supply chain have driven dealmaking around the world, Japan is yet to match the wave of startups that can capture the imagination of investors, like in China. Some IPO hopefuls were also deterred by the Tokyo Stock Exchange (TSE)’s plan to raise the bar for companies to remain listed in its startup section, as part of its effort to attract more quality issuers.

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