Tokyo-based advertising technology (adtech) startup Fringe81 is planning to list on the MOTHERS board of the Tokyo Stock Exchange (TSE), following the bourse regulators approving its initial public offer (IPO).
Fringe81 was founded in 2005 as RSS Kokokusha, which focused on advertising in RSS feeds but rebranded to Fringe81 in 2010. Since then, it has developed several new technical offerings. One is Digitalice, a cloud-based ad server platform that permits advertisers and media firms to analyse advertisement performance, user behaviour and how users crawl the websites after viewing ads.
Led by the company’s CEO, Yuzuru Tanaka, who holds 49.8 per cent of the venture, its major shareholders include Itochu Technology Ventures (16.84%), Cyber Communications (5.54%), and CyberAgent (5.48%).
It will list on the TSE MOTHERS Market on 27 June, with 108,800 shares for public subscription and to sell 39,000 shares in over-allotment options, for a total of 151,300 shares. Nomura Securities will underwrite the IPO. Its share price range will be released on 6 June, with its bookbuilding scheduled to start on 8 June and pricing to commence on 15 June.
February 2015 saw Fringe81 secure $3.5 million from iStyle Capital, NTT Docomo Ventures, Gree, Dentsu Digital Holdings, and TBS Innovation Partners. Prior to this, it raised JPY 240 million ($2.6 million at 2013 exchange rate) from Itochu Technology Ventures in March 2013. This brings their aggrgate equity funding raised to about $4.1 million.
According to the consolidated statement as of March 2017, Fringe81 posted revenue of JPY 4.5 billion yen ($40.5 million) and an ordinary loss of JPY 54 million ($486,000). Its public offer price per share is estimated at JPY 2,070 ($18.6).
Back in 2010, the Tokyo bourse relaxed its restrictions in order to spur more startup listings. A listing on the TSE Mothers board can be a shorter route to a partial or early exit for startups, as well as being a channel for raising funding. The outcome of this was that the TSE saw a surge in startup listings at the beginning of 2016.
According to a Bloomberg report, on the TSE Mothers market, five of the top ten largest companies by market value are technology enterprises that originated as university startups.