Key facts
- JERA, Japan's largest power generator and LNG importer, is studying a potential U.S. stock market listing.
- The feasibility study is in its early stages, with no final decisions made.
- A U.S. listing would support JERA's international expansion and broaden its funding options.
- JERA recently established JERA Global Energy Solutions (JERA GES) in Singapore to manage its global energy businesses.
- JERA is also considering developing U.S. gas-fired power plants for data center demand.
JERA, Japan's largest power generator and LNG importer, is undertaking a feasibility study for a potential listing on a U.S. stock exchange. This strategic consideration is part of the company's broader plan to enhance its international footprint and diversify its funding avenues. While the Tokyo Stock Exchange has historically been viewed as the primary venue for an initial public offering, JERA is now exploring engagement with global capital markets, particularly in New York.
The study is in its preliminary stages, and no definitive decisions have been made regarding the timing, structure, or valuation of a potential IPO. JERA, jointly owned by Tokyo Electric Power and Chubu Electric Power, generates approximately 3 trillion yen ($18.48 billion) in annual revenue from total assets valued around 10 trillion yen, supplying about 30% of Japan's power.
The company has outlined significant investment plans, intending to deploy 5 trillion yen between fiscal years 2024 and 2035, with a target net profit of 350 billion yen by the end of that period, an increase from its fiscal 2025 net profit of 183.6 billion yen. JERA, a major purchaser of liquefied natural gas (LNG), is increasing its upstream investments and procurement in the U.S. and is also expanding its renewable energy portfolio.
Recent reports suggest JERA is evaluating the development of large-scale gas-fired power plants in the U.S. to address the escalating electricity demand from data centers. A U.S. listing could bolster JERA's capacity to finance substantial energy projects and international ventures, while simultaneously elevating its profile among global investors and providing stock for potential mergers and acquisitions.
This exploration of U.S. capital markets aligns with a broader trend of Japanese companies seeking wider investor bases internationally. JERA's move also follows the recent establishment of its wholly owned subsidiary, JERA Global Energy Solutions (JERA GES), headquartered in Singapore, which will focus on managing its LNG, upstream, low-carbon fuels, and shipping businesses.