HeartCore's NASDAQ Listing Proves It is Possible Even For Small Companies

The Tokyo Stock Exchange, Japan’s stock market, is the fifth-largest exchange in the world with over 3,800 listed companies boasting a combined market capitalization of about $6 trillion. 

But even at that size, it’s still far smaller than U.S. exchanges like the New York Stock Exchange and Nasdaq Stock Market, which carry market capitalizations of $27.21 trillion and $22.42 trillion, respectively.

With Japanese companies eager to go public on Nasdaq and gain access to U.S. capital, HeartCore Enterprises Inc. HTCR, a Tokyo-based software development company, reports that it has launched Go IPO to help them achieve that goal. HeartCore went through its own NASDAQ initial public offering (IPO) in February.

Japanese Brands Have Penetrated American Markets But Are Rarely Listed On US Exchanges

Many Japanese brands have become household names in the United States. Vehicles from Toyota Motor Corp. TM and Honda Motor Co. Ltd. HMC are on streets across the country. Sony Group Corp. SONY products are in just about every home. Canon Inc. CAJ and Nikon Corp. NINOY have dominated the photography industry for decades. Japanese beauty and wellness products are rising in popularity, making up a piece of the third-largest proportion of U.S. imports from Japan.

Even so, just three Japanese companies have been listed on NASDAQ to date: Medirom Healthcare Technologies Inc. MRM, Yoshitsu Co. Ltd. TKLF and HeartCore Enterprises. 

Part of the reason for this discrepancy is reportedly the challenge of meeting the compliance and application requirements for listing on Nasdaq as a company based outside of the United States. In fact, HeartCore recommends establishing a new company inside the U.S. to make the process smoother.

Converting Japanese accounting data to comply with Nasdaq standards, translating documents into English and negotiating with audit firms can be time-consuming, complicated and hard to get right without help. 

HeartCore Says Its Go IPO Consulting Service Bridges The Gap For Japanese Companies

In April, HeartCore announced the launch of Go IPO, a consulting service leveraging the software development company’s first-hand experience with uplisting to Nasdaq and all of the unique compliance and application processes that come with it.

“After our successful IPO, we understand what it takes to transition from a private entity to a Nasdaq-listed public company and are confident in our ability to assist other Japanese companies that are looking to make a similar transition through our Go IPO service offering,” CEO Sumitaka Kanno (Yamamoto) said in a statement on the launch of Go IPO.

The consulting service is meant to offer Japanese companies full support in navigating the process of converting accounting data, finding underwriters and auditing firms and getting the application put together. Instead of the average timeline of 10 months for companies that attempt to do this on their own, HeartCore states that its support can shrink that to as little as five months.

Three Companies Working With Go IPO

Just a couple of months after launch, HeartCore reported that the new consulting service signed three clients: SYLA Holdings Co. Ltd, A.L.I. Technologies Inc. and Moveaction Co. Ltd. They will generate combined revenues of $1.3 million in initial fees over the next six months. 

SYLA is a real estate company involved in rental management and property sales. A.L.I. Technologies is a startup specializing in cutting-edge tech like artificial intelligence, blockchain and drones.  Meanwhile, Moveaction is a rapidly expanding group of clinics focused on physical therapy, acupuncture and other treatments for a range of conditions ranging from injuries to postpartum recovery.

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