Stock Listing and Tokyo Pro Market

Let's consider stock listing.
The first thing you face when listing is which market to list on.
For the Tokyo Stock Exchange, companies are classified into Growth, Standard, and Prime based on their size and other factors. Companies that list are required to meet formal requirements such as business performance and to establish corporate governance.
For example, an audit by an audit firm is required for two years, which is a high hurdle in terms of costs and preparation time.
The disadvantage of listing is that administrative man-hours increase.
Time is needed for preparation, and personnel must be assembled, which incurs labor costs.

The Tokyo Pro Market is a market with relaxed listing requirements.
With the establishment of the TPM, the bar for listing has been lowered, and listing has become more accessible.
While it may not be suitable for fundraising due to certain restrictions, it does guarantee credibility.

Let's look at the merits and demerits of a TPM listing.

Merits
1. Improved brand recognition and increased credibility.

Increased credibility has a positive impact on recruitment, sales activities, and borrowing from financial institutions. Furthermore, by disclosing information, it also has a positive impact on negotiations for starting new business transactions and M&A.

2. Improvement in governance

Governance improves, serving as a step up to the general market.

Demerits

1. Timely disclosure

There is a need for timely disclosure, which incurs administrative and management costs.

2. Listing costs and maintenance costs

New listing fees, annual listing fees, etc., are incurred as costs.

Features

1. Maintenance of stock ownership ratio

Since there is no liquidity requirement, external shareholders can be restricted.

2. Listing in as little as one year

The audit period only needs to be one year, and the submission of internal control reports and quarterly reports is optional.

3. Listing support by J-Adviser

https://www.jpx.co.jp/equities/products/tpm/issues/index.html

4. Differences between Tokyo Pro Market and the Main Market

5. Examples of companies that listed via TPM