JERA starts study on US listing, sources claim.
JERA, Japan’s largest power generator, is launching a feasibility study to explore ways of expanding overseas, and increasing funding options.
People said that the unlisted company owned by Tokyo Electric Power (TEP) and Chubu Electric Power (CEP) has always viewed the Tokyo Stock Exchange, as the primary listing option, but now is exploring ways to increase engagement with global investors, as it accelerates international expansion.
JERA is examining U.S. investor demand, market conditions and regulatory requirements. Two people who declined to be named as this matter was confidential said that JERA had begun examining these factors.
They said that the study was still in its early stages and JERA had not yet made any decisions about timing, listing structure, or market valuation.
JERA 'has signaled its intention for a long time to pursue an IPO in order to boost capital and corporate values. One person said that the demand for engagement from overseas institutional investors has increased and that it is now'strengthening outreach'.
JERA is the first to announce its considerations for a possible U.S. listing.
JERA, Tokyo Electric, and Chubu Electric have declined to comment.
JERA SEEKS GLOBAL EXPANSION
The assets of Japan's largest buyer of liquefied gas are around 10 trillion yen. This generates an annual revenue of about 3 trillion yen (18.48 billion dollars). The country's total power generation capacity, including those projects in development, is 59 gigawatts. This is equivalent to about 30% of its power.
JERA plans on investing 5 trillion yen between fiscal 2024 and 2035. The goal is to achieve a net profit of 350 billion dollars by that point, up from 183.6 billion dollars in fiscal 2025.
Recent investments and purchases have been focused on the U.S. The company has also expanded its renewable energy business.
The Nikkei reported that JERA was considering large-scale gas-fired power stations in the U.S. in order to meet the surging demand for electricity from data centres. This highlights the importance of JERA's overseas operations.
A listing could boost JERA's ability to fund large energy projects and international expansion, while ?raising its profile among global investors and providing stock that could be exchanged in merger-and-acquisition deals.
JAPANESE COMPANIES TAPPING U.S. CAPITAL MARKET
JERA's report comes at a time when a growing number of Japanese companies are turning to U.S. capital markets to expand their investor base, as their businesses become increasingly global.
PayPay, which is owned by SoftBank Group and listed on Nasdaq this year, meanwhile memory-chip manufacturer Kioxia prepares to list American Depositary Shares.
Last year, it was reported that Rakuten Group’s Rakuten Card division was considering an American listing.
(source: Reuters)
