The number of initial public offerings is falling on the markets for start-up companies, namely JASDAQ, NASDAQ Japan and the Mothers market of the Tokyo Stock Exchange, partly because of weak earnings, the Nihon Keiza newspaper said.
The number of IPOs may fall as much as 80 percent to between six and nine companies in the two months from July, dropping from 32 companies in the same period last year, as the weak economy and falling stock markets discourage companies from selling shares to the public, the paper said. Institutional investors are also wary of buying new share issues in such a climate, the paper added.
The number may drop as much as 18 percent to 120 for the full year from 147 last year, after reaching its record of 157 in 2000, the paper said. Securities companies are becoming more cautious about underwriting IPOs as some young companies' businesses are weak.
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