15th January 2025 – (Tokyo) A total of 94 companies were delisted from the Tokyo Stock Exchange (TSE) last year, the highest figure since 2014 when comparable data became available, local media reported on Wednesday.
Reasons for these delistings included business failures and companies becoming wholly-owned subsidiaries. However, the primary factor driving the increase appears to be a rising trend of firms voluntarily opting to go private, aimed at enhancing managerial flexibility, according to the national broadcaster NHK, which cited data from the exchange.
In May 2024, major education service provider Benesse Holdings went private through a buyout led by its founding family, indicative of a broader movement as companies seek greater autonomy amid escalating demands from foreign investors for profitability and operational efficiency.
By the end of 2024, the total number of TSE-listed companies stood at 3,842, reflecting a decline of one compared to the previous year—the first drop since 2013.
With the costs associated with maintaining a listing and investor pressures expected to rise, analysts anticipate that more companies may choose to privatise in the coming year, according to the report.
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