Japan sees fewer IPOs as Iran war, AI shock and rate anxiety slow tech listings

The number of initial public offerings in Japan has been falling sharply amid a slowdown in technology listings. The number of initial public offerings in Japan has been falling sharply, reflecting a slowing pace of new listings by software-related companies that had previously led IPO activity in the country. Companies are moving to postpone their IPOs amid financial market turmoil caused by the war in Iran, concerns that artificial intelligence could replace traditional software products and businesses, and rising interest rates. The Tokyo Stock Exchange's mainstay Prime, Growth and Standard sections saw 17 companies go public in the first half of the year, down about 30% from a year before, according to the TSE. Annual IPO activity has been lackluster since the number peaked at 123 in 2021, when fundraising conditions were favorable as countries eased monetary policies to combat the COVID-19 pandemic.