Key facts
- JERA, Japan's largest power generator, is studying a potential U.S. stock market listing.
- The company is owned by Tokyo Electric Power and Chubu Electric Power.
- JERA plans to invest 5 trillion yen ($30.8 billion) from fiscal 2024 through 2035.
- The utility handles approximately 35 million metric tons of LNG annually.
- JERA is considering U.S. gas-fired power plants to meet data center demand.
JERA, Japan's largest power generator, has commenced a feasibility study for a potential listing on a U.S. stock exchange. This move is part of the company's strategy to expand its global presence and diversify its funding sources. While the Tokyo Stock Exchange has been considered the primary option, JERA is now actively exploring engagement with international investors.
The study is in its initial phase, with no definitive decisions made regarding the timing, structure, or valuation of a potential initial public offering. JERA, jointly owned by Tokyo Electric Power and Chubu Electric Power, generates annual revenues of approximately 3 trillion yen ($18.48 billion) from assets valued around 10 trillion yen. The company supplies about 30% of Japan's power.
JERA has outlined plans to invest 5 trillion yen between fiscal years 2024 and 2035, aiming for a net profit of 350 billion yen by the end of that period, up from 183.6 billion yen in fiscal 2025. The utility, a major buyer of liquefied natural gas (LNG), is increasing its upstream investments and procurement in the U.S. and is also expanding its renewable energy business.
Recent reports indicate JERA is considering developing large-scale gas-fired power plants in the U.S. to cater to the growing electricity demand from data centers. A U.S. listing could enhance JERA's capacity to finance major energy projects and international ventures, while also elevating its profile among global investors and providing stock for potential M&A activities.
JERA's exploration of U.S. capital markets aligns with a trend of Japanese companies seeking broader investor bases internationally. Examples include PayPay's Nasdaq listing and Kioxia's preparation for listing American depositary shares. Rakuten Group's Rakuten Card unit was also reported to be considering a U.S. listing.