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TSE Proposes 10 B. Yen Market Cap for Growth Section

TSE Proposes 10 B. Yen Market Cap for Growth Section

   Tokyo, April 22 (Jiji Press)--The Tokyo Stock Exchange proposed Tuesday that firms listed on its Growth section be required from 2030 to have market capitalization of at least 10 billion yen after their fifth year on the section mainly for startups.
   The proposed tightening of the listing standards, presented to an expert panel the same day, is aimed at filling the section with high-growth companies by spurring the delisting of firms that cannot expand their market capitalization.
   The current standards require firms to have market capitalization of 4 billion yen or more after the 10th year on the section.
   Through the change, the TSE hopes to attract funds from institutional investors who investment mainly in firms with market capitalization of at least 10 billion yen.
   Growth-section firms will be faced with the choice of either getting delisted or boosting their market capitalization through mergers and acquisitions or management buyouts. The TSE will also allow firms that cannot meet the new standards to switch to the Standard section for midsize firms.

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AFP-JIJI PRESS NEWS JOURNAL


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