Companies from outside Japan are preparing to sell shares on the Tokyo Stock Exchange for the first time in almost four years, according to the bourse's head of listing promotion.
"Several companies have selected Japanese brokerages as lead managers for initial public offerings and are preparing for listings," Hiroshi Iwase said Tuesday. "It is possible for them to be listed in 2011 or 2012 if the process goes smoothly."
Iwase wouldn't reveal where the companies are based, in which industries they operate or at what stage they are in the listing process.
If successful, the listings would be the first by foreign companies since Citigroup Inc. and China Boqi Environmental Solutions Technology (Holding) Co. in 2007. Just 12 foreign companies are currently listed on the TSE from a peak of 127 in 1991, according to the bourse's website.
The drop in interest from overseas companies tracks a 54 percent decline in the Topix from March 1991 through Tuesday.
Citigroup's Japanese shares have lost 90 percent of their value since their first Tokyo close. China Boqi has also fallen 90 percent.