JERA weighs US listing to fund overseas expansion
Japan's largest power generator has begun studying a potential U.S. listing to access global capital and fund a 5 trillion yen overseas expansion drive.
JERA, the unlisted Japanese power giant co-owned by Tokyo Electric Power and Chubu Electric Power, has started evaluating a U.S. initial public offering. The feasibility study is at an early stage, with no decisions yet made on timing, valuation or listing structure.
A U.S. listing would represent a strategic pivot for a company that has historically viewed the Tokyo Stock Exchange as its primary destination. The move is driven by increasing demands from overseas institutional investors for direct engagement, alongside a need to broaden funding options beyond domestic markets.
JERA requires substantial capital to execute its growth strategy. The utility plans to invest 5 trillion yen between fiscal 2024 and 2035, targeting net profit of 350 billion yen by that point, up from 183.6 billion yen in fiscal 2025. A public listing in New York would provide equity currency for potential acquisitions and a higher profile among global fund managers.
The capital would largely support an international expansion, with a particular focus on the United States. JERA handles roughly 35 million metric tons of liquefied natural gas annually and has recently concentrated its upstream investment and procurement efforts in the U.S. The company is also considering building large-scale American gas-fired power plants to supply surging electricity demand from data centres.
JERA's deliberations reflect a broader trend of Japanese corporates seeking U.S. listings as their operations become increasingly global. Fintech firm PayPay listed on the Nasdaq this year, while memory-chip maker Kioxia is preparing an American depositary share listing and Rakuten Group's credit card unit is exploring a similar move.
The utility remains a cornerstone of Japan's energy infrastructure, generating annual revenue of 3 trillion yen from roughly 10 trillion yen in assets. With 59 gigawatts of domestic generation capacity, including projects under development, JERA currently supplies about 30 percent of Japan's electricity.
