The number of companies announcing delistings on the Tokyo Stock Exchange reached a record 111 from January through the end of July this year. By market segment, 39 were on the Prime Market, 62 on the Standard Market and 9 on the Growth Market. Acquisitions, the unwinding of parent-subsidiary listings and MBOs have been cited as factors behind the move to go private.
The number of companies announcing delistings on the Tokyo Stock Exchange reached 111 from January through the end of July this year, putting it on track to set a new record by a wide margin over last year. Delistings have occurred across all 3 market segments: the Prime Market, Standard Market and Growth Market.
The breakdown for the period was 39 companies on the Prime Market, 62 on the Standard Market and 9 on the Growth Market. An official at the Japan Exchange Group indicated that delistings could proceed at a pace that exceeds last year's total of 125 companies.
Experts point to a growing number of cases involving going private because of deteriorating performance, going private following acquisitions by funds, the unwinding of parent-subsidiary listings through arrangements in which a parent company first separates from and then acquires its listed subsidiary, and going private through management buyouts (MBOs).
In subsequent coverage, the focus is expected to be on how the delisting trend develops across the market segments and how individual company cases are reported.