What Nomura Values in IPO Support

When helping startups prepare for an IPO, Nomura places great importance on the founder’s vision and mindset. We partner closely with startup founders who seek to change Japan and the world, providing hands-on, day-to-day support. Satomi Nagai, Head of the Private Corporate Solution & Advisory Department and an experienced IPO advisor, explains Nomura’s core IPO processes and the concrete, on-the-ground assistance we offer.

Q. First of all, can you explain what an IPO is?

An IPO, or initial public offering, is the process by which an unlisted company lists its shares on a stock exchange so that a wider range of investors can buy and sell its stock on the public market. The main purpose is to raise growth capital—after listing the company gains more flexible access to the capital markets, both at the time of the IPO and afterward. Other common benefits include better recruiting and stronger branding, which can help accelerate growth. In addition, many companies preparing for an IPO have previously raised funds from venture capital firms and other investors to drive expansion. An IPO provides the exit needed so those investors can realize returns.

Q. How does a company actually change when it goes public?

Going public helps a company build a foundation for further growth through the IPO preparation process. To obtain stock exchange approval, companies must satisfy listing requirements, which usually prompts them to strengthen corporate governance. By governance, I mean establishing internal systems and controls that enable the company to generate sustainable profits, while minimizing risks and maximizing corporate value. These systems become the cornerstone that supports the company as it grows.

Q. How long does it take from the time you first engage with a company to when they list? 

It takes a minimum of about two years. Recently, there have been substantial inflows of capital into unlisted companies, and it has become increasingly common for them to raise several hundred million to over a billion yen. With more fundraising options available, many companies now choose to time their IPOs strategically rather than rush to go public. As a result, even after selecting a lead underwriter, listing is often five to six years away.

Q. How do you find companies?

Sometimes we research sectors with growth potential and proactively reach out, and other times we are introduced by founders. Conversations with venture capitalists, audit firms, and other partners also lead us to growth companies, and pitch events that bring startups together can also serve as a catalyst. Companies don’t usually appoint a lead underwriter until they begin formal IPO preparations, so we often spend years expressing interest before we get to that stage. Later, a company may ask us directly to serve as lead underwriter, or Nomura may be selected after a competitive process. 

Q.  What processes are involved up to the actual listing?

The listing process has two main parts: regulatory review (screening) and marketing. 

First, for regulatory review, we help companies establish the internal control systems required to pass the stock exchange’s screening. Working with the listing criteria in mind, we tailor systems and processes to each company. We also meet regularly with clients and provide advice from the securities company’s perspective. Once preparations reach the required level, the securities firm conducts its review and the company files an application for listing with the exchange. If the exchange’s review is successful, listing approval is granted.

For marketing, we develop a strategy—when, who, and what to communicate. We help institutional investors properly understand the company’s value and ensure the company secures an appropriate valuation, and then carry out the necessary preparations.

Q. What do you keep in mind when supporting companies?

The most important thing is to understand clearly what the founder is trying to accomplish. From there, we offer a wide range of support: advising on capital policy, introducing potential customers for sales cooperation, refining the equity story, and introducing investors for fundraising.

The equity story explains to investors why the company is worth investing in based on its medium to long-term revenue growth and value creation. We get to heart of the business and craft a coherent narrative of what the company can achieve over time based on its current situation. We develop this story through dialogue with the founder—and because we understand both companies and investors, we can also refine it as necessary. 

Our mission is to help companies that will change society grow. To support founders who aim to transform Japan and the world, we must understand and empathize with their goals. We always consider the founder’s desired timeline and strategy and what Nomura can contribute.

No growth company progresses in a straight line. Growth comes with ups and downs, and periods of success and difficulty are natural. Those are the times when we must consider how Nomura can help. When we decide to support a company, we stay committed—acting as a partner who discuss and help founders overcome organizational or strategic challenges together.

Q. What makes Nomura strong in IPOs?

Put simply: our people. And the exceptional strength of our organization. Our founder Tokushichi Nomura’s principle of “prospering with our clients” is ingrained throughout the company, and every employee is driven by a shared mission to serve our clients.

We have supported many IPOs and faced numerous challenging situations — from external shocks like a market crash right before listing or a pandemic, to internal issues such as governance problems at a client company. On several occasions, urgent problems arose that would have forced us to abandon the IPO schedule if not resolved within a day or two. In every case, colleagues came together to find solutions. United by the mission to serve the client, teams push past departmental boundaries and conventional logic. That cohesion is one of Nomura’s greatest strengths.

Q. Are there any other strengths?

Yes. Another key strength is our precise marketing capability. Over the years, Nomura has built strong relationships with global institutional investors through the “Buy Japan” initiative. The trust and insights we have developed through many deals help us understand how investors think and enable us to succeed with difficult and large IPOs. 

After listing approval, the founder presents directly at the roadshow to seasoned institutional investors in Japan and overseas. Behind the scenes, Nomura’s institutional sales teams engage investors in careful, ongoing dialogue to ensure they have an accurate understanding. This company-wide coordination— combining rigorous regulatory review with deep investor relations expertise— allows us to support listings even in the most challenging situations.

Q. What are Nomura’s prospects for IPOs? 

Over the past decade, capital flowing into unlisted companies has grown significantly. With the government’s 2022 “Startup Development Five-year Plan” and related initiatives, startup support has become a national priority. Last year, the Tokyo Stock Exchange announced the “Revision to the Growth Market’s Continued Listing Criteria”), and I believe these reforms have further strengthened the foundation for rapidly growing companies to scale.

In response, Nomura is expanding pre-IPO support—not only for pre-listing fundraising but a broader range of business services. To reflect this focus, we reorganized in October 2025 and established the Private Corporate Solution & Advisory Department. We added “Private” because we want to support growth companies in the private domain from multiple angles, not only through IPOs.

My goal is to build Japan’s leading team for supporting growth companies in the private domain. By bringing together knowledge and solutions, I want to create an organization that clients genuinely see as valuable for their companies.

I want Nomura to be a place where founders feel comfortable consulting with us about changing Japan, changing the world, or building new industries.

Q. What kinds of companies interest you?

First of all, I look at the founder and the management team. What industry they focus their resources on and whether they can build a viable business model are important for growth, but business models can be refined and enhanced over time. I’m more interested in whether the founder and team can pivot when they’re wrong, overcome obstacles, and unite around a clear purpose. 

Of course, as an organization we conduct thorough research and review both quantitative and qualitative factors. Personally, my key criterion is whether I can devote myself wholeheartedly to that founder and company.

Q. What do you find most rewarding about this work?

The greatest reward is being personally involved at pivotal moments in the management of companies with strong convictions and ambitious goals.

Also, in corporate business few roles allow you to cry, laugh, and get angry alongside your clients. It’s a real joy when clients see us a partner and trusted ally.