Overview

On 10 June 2011, a biotechnology firm called Mebiopharm Ltd became the first company to formally submit an application for listing on the Tokyo AIM Exchange.

The Tokyo AIM is a joint venture between the London Stock Exchange and the Tokyo Stock Exchange. It is modeled on the London Stock Exchange's AIM and is open only to professional investors and non-Japanese residents. The Tokyo AIM started its operations after being licensed by Japan's Financial Services Agency in 2009. The Tokyo AIM incorporates many aspects of its London counterpart, including the use of Nominated Advisors (J-Nomads). It was always intended to attract emerging companies and foreign companies (by allowing English documentation and the use of IFRS) seeking capital investments in a market that is more flexible than other markets in Japan.

This briefing from DLA Piper looks at the background to this move and its wider significance for Japan's struggling alternate markets.