Japan's Hottest Tech IPO in 5 Years Shows Retail Trading Fever

A little known company specialized in artificial intelligence has gained more than sevenfold since its listing in Japan last month, underscoring the insatiable demand for technology stocks from the country's retail investors. Neural Pocket Inc., which analyzes photos and videos using AI, gained 622% in its first eight trading days through Aug. 31, the most among tech listings in Japan since 2015, according to Bloomberg-compiled data. The stock has extended its gain since then to a current valuation of over $1 billion. Neural Pocket's eight-day gain beat out that of Ficha Inc., a developer of image recognition software that went public in June, by just a few basis points. Neural Pocket's surge was supported by amateur investors who have become more active in Japan's stock market as they work from home during the coronavirus pandemic, according to Tomoichiro Kubota, a senior market analyst at Matsui Securities Co. "This stock is getting hugely popular among retail investors," Kubota said.