Asia’s equity markets have shown a strong momentum in 2025 as Japanese initial public offerings (IPOs) surged to their highest capital raising in seven years. This followed developments on firms like JX Advanced Metals Corp and SBI Shinsei Bank Ltd as they launched billion-dollar share sales.
Total funds raised climbed to ¥1.2 trillion (approximately $7.67 billion), representing the highest figure since 2018, based on data compiled by Bloomberg. Prominent retailers like Human Made, backed by celebrity designer Nigo, and Orion Breweries Ltd from Okinawa, exceeded 60 times the number of shares available, showing robust demand from investors.
The strong IPO performance of the world’s fourth-largest economy aligns with a regional upswing, as major listings across Asia gather pace. Notably, India posted record capital inflows as companies sought to capitalise on investor appetite for new shares, while Hong Kong’s IPO proceeds are headed for their highest level since 2021.
The outlook for Japanese equities remains positive, with steady investor interest propelling the benchmark Topix Index to fresh highs this year. The gains come amid the end of protracted deflation and reforms driven by government initiatives and changes at the Tokyo Stock Exchange to enhance corporate governance.
