Japan's Top Power Generator JERA Studies Potential U.S. Listing, Sources Say

JERA, Japan’s largest power generator, has initiated a feasibility study for a potential U.S. stock market listing to support its international expansion and diversify its funding sources, according to three people familiar with the matter. The unlisted utility, a joint venture between Tokyo Electric Power and Chubu Electric Power, is exploring ways to deepen its engagement with global investors.

Exploring a U.S. IPO

The study, which is in its early stages, is examining U.S. market conditions, potential investor appetite, and regulatory requirements, two of the sources said. They stressed that no final decisions have been made regarding the timing, structure, or potential valuation of an initial public offering (IPO). The sources declined to be identified as the matter is confidential.

While the Tokyo Stock Exchange has long been viewed as JERA's primary listing option, increased demand for engagement from overseas institutional investors has prompted the company to strengthen its global outreach. Reuters was the first to report on the company's U.S. listing considerations. JERA and its parent companies declined to comment or were not available.

Funding Global Expansion

A U.S. listing would provide JERA with significant capital to execute its ambitious growth strategy. The company plans to invest 5 trillion yen between fiscal 2024 and 2035, with a target of achieving a net profit of 350 billion yen by that time, up from a projected 183.6 billion yen in fiscal 2025.

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As Japan's biggest buyer of liquefied natural gas (LNG), JERA has been expanding its LNG supply chains and renewable energy portfolio, with a growing focus on the U.S. market. A recent Nikkei report noted JERA is considering building large-scale gas-fired power plants in the U.S. to meet surging electricity demand from data centers. Access to public markets would enhance its ability to fund such projects and provide stock that could be used in future M&A deals.

Context: Japanese Firms Turn to U.S. Markets

JERA's move aligns with a growing trend of major Japanese corporations turning to U.S. capital markets to access a deeper pool of investors as their operations become more global.

Other notable Japanese companies that have recently pursued or are reportedly considering a U.S. listing include:

• PayPay, the SoftBank-backed payments firm, which listed on the Nasdaq.
• Kioxia, a memory-chip manufacturer, which is preparing to list American depositary shares.
• Rakuten Card, a unit of Rakuten Group, which was also reported to be weighing a U.S. listing.