Market Review
Improvement in Listing System
On April 4, 2022, the Nagoya Stock Exchange (NSE) will effect an improvement in its listing system.
The NSE is a market mainly for individual domestic investors, and it has been implementing various policies, including its IR Expositions aimed at developing and increasing the number of individual investors.
This improvement has been designed on the basis of the characteristics of the market and of our various policies, and the changes are as follows:
Change of Names of Markets
＊Companies will remain listed as they are on April 3, 2022 in each market, after markets are renamed in accordance with the new classification. There will be no need to select a class of a market or go through any application formality for listing.
＊The current alternative listing system (automatic transfer from the first section of the market to the second section of the market) will be kept as it is. The system will continue to change the market class in the same way, from the renamed Premier Market to the Main Market.
Concepts of Markets
| Premier Market | This is the market for a company highly appraised in the market based on its excellent profit base and financial position. It is selectable for many investors, including individual investors, for a continuing shareholding. |
| Main Market | This is the market for a company having established its stable management base and having been favorably appraised in the market based on a certain level of business performance. It is selectable for many investors, including individual investors, for a continuing shareholding. |
| Next Market | This is the market for a company making timely and appropriate disclosures of its business plan with an outlook towards a future step up in its progress and the aim of future growth, currently being favorably appraised in the market to a certain extent. |
Outline of Criteria for New Listing and Criteria for Listing Maintenance (as from April 4, 2022)
Premier Market
| Item | Criteria for New Listing |
Criteria for Listing Maintenance | ||
|---|---|---|---|---|
| Number of shareholders | 800 or more | 800 or more | ||
| Number of tradable shares | 20,000 units or more |
20,000 units or more |
||
|
Rate of tradable shares
|
35％ or more |
35％ or more
|
||
| Volume of trade and Rate of pricing |
－ |
Monthly average:40 units or more |
||
| Market capitalization |
25 billion yen or more |
10 billion yen or more |
||
| Profit and business performance | Total of profits in last 2 years:2,500 million yen or more or Sales: 10 billion yen or more and Market capitalization: 100 billion yen or more |
－ | ||
| Financial position and Net assets |
5 billion yen or more | Positive | ||
| Public subscription | － | － |
Main Market
| Item | Criteria for New Listing |
Criteria for Listing Maintenance | |
|---|---|---|---|
| Number of shareholders | 300 or more | 150 or more | |
| Number of tradable shares |
2,000 units or more and 25％ or more ＊1,000 units or more or 10% or more of number of listed shares, whichever is larger |
1,000 units or more |
|
|
Rate of tradable shares
|
10％ or more
|
||
| Volume of trade and Rate of pricing |
－ |
Monthly average: 3 units or more |
|
| Market capitalization |
1 billion yen or more |
500 million yen or more |
|
| Profit and business performance | Total of profits in last 1 year: 100 million yen or more |
－ | |
| Financial position and Net assets |
Positive | Positive | |
| Public subscription | － | － |
Next Market
| Item | Criteria for New Listing | Criteria for Listing Maintenance | |
|---|---|---|---|
| Number of shareholders | 150 or more | 150 or more | |
| Number of tradable shares | － |
－ |
|
|
Rate of tradable shares
|
－ |
－ |
|
| Volume of trade and Rate of pricing |
－ |
Monthly average: 10 units or more or Rate of pricing: 20% or more |
|
| Market capitalization |
300 million yen or more |
200 million yen or more |
|
| Profit and business performance | － | Operating profit and operating cash flow have not been negative for 5 consecutive years since 4th year after listing
＊Applicable to companies with going concern notes |
|
| Financial position and Net assets |
－ | Positive | |
| Public subscription |
500 units or more ＊Excluding already listed companies |
－ |
＊The Criteria for New Listing will be applied to applications for new listing filed on or after September 1, 2021.
＊The transitional measures (Criteria for Relaxation) will be applied to the Criteria for Listing Maintenance for the time being on and after April 4, 2022.
＊The "Criteria for Tradable Shares Market Capitalization" will continue to be excluded from introduction into the Criteria for New Listing and the Criteria for Listing Maintenance.
Measures for Corporate Governance Code
Each market will continue to take the current measures.
The items for the Prime Market of the Tokyo Stock Exchange are not applied to the Premier Market at this moment.