Japan Ipo Count Hits 15-Year Low as Ai Startup Gap Widens
The drop reflects Japan's structural weakness in producing high-growth tech startups, a gap that is now directly affecting its capital markets and IPO pipeline.
Reporting from 1 sources: GIGAZINE.
Japan recorded only 18 IPOs in the first half of 2026, the lowest since 2011, with total funds raised of $917 million. Experts cite a shortage of AI, data center, and semiconductor startups as a key factor, and do not expect a recovery in the second half of the year.
Japan's IPO market is contracting sharply. Data from Dealogic, cited by the Financial Times, shows just 18 initial public offerings in the first half of 2026, the lowest half-year total since 2011. The $917 million raised is the smallest sum since 2022, and roughly half the recent average of 35 IPOs per half.
Bankers point to a shortage of domestic startups in AI, data centers, and semiconductors-sectors that are driving IPO activity elsewhere. Shu Nagata of Bank of America's Tokyo office said the market may see a gradual increase from late 2026 into 2027, but cautioned that geopolitical volatility and strict IPO screening in Japan are keeping investors cautious.
One bright spot: ride-hailing app GO, which listed on June 16, drew 70% overseas investors, well above the recent average. Still, the overall trend is down, and experts do not expect a rebound in the second half of 2026.
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.