JERA, the largest power generation company in Japan, has quietly begun exploring whether to list its shares on a U.S. stock exchange, according to three individuals with knowledge of the matter.
The company, which is privately held and jointly owned by Tokyo Electric Power and Chubu Electric Power, has traditionally looked toward the Tokyo Stock Exchange as its most likely venue for going public. However, sources say JERA is now examining ways to connect with international investors as it pushes forward with global expansion plans.
Two of the sources, all of whom asked not to be named due to the sensitive nature of the discussions, said JERA has begun reviewing U.S. market conditions, the level of interest from potential investors, and what regulatory hurdles it would need to clear.
The review is still in its earliest stages. No decisions have been reached on when an initial public offering might take place, how it would be structured, or what the company’s market value might be, the sources indicated.
JERA has previously signaled its interest in pursuing a public offering as a way to raise capital and grow its corporate profile. One source noted that rising interest from overseas institutional investors has pushed the company to strengthen its outreach efforts internationally.
JERA declined to offer any comment on the matter. Representatives for Tokyo Electric and Chubu Electric were not available to respond.
In terms of scale, JERA is Japan’s largest buyer of liquefied natural gas and brings in annual revenue of 3 trillion yen — roughly $18.48 billion — supported by assets totaling around 10 trillion yen. Its domestic power generation capacity stands at 59 gigawatts, including projects still under development, and it accounts for approximately 30% of Japan’s total electricity supply.
Looking ahead, JERA plans to invest 5 trillion yen between fiscal year 2024 and 2035, with a target of reaching 350 billion yen in net profit by that point, up from 183.6 billion yen in fiscal 2025.
The company handles roughly 35 million metric tons of LNG each year and has been building out its supply chain through upstream investments, fuel purchasing, and trading — with recent activity concentrated in the United States. JERA has also been growing its renewable energy operations.
The Nikkei newspaper reported in June that JERA is weighing the development of large-scale natural gas power plants in the U.S. to help meet the rapidly growing electricity demand driven by data centers — highlighting how significant its overseas business has become.
A successful U.S. listing could give JERA greater financial firepower to fund major energy projects and global expansion, while also raising its visibility among international investors and giving it stock that could be used in potential merger or acquisition deals.
JERA’s exploration comes amid a broader trend of Japanese companies turning to U.S. capital markets as their operations become more global. PayPay, which is backed by SoftBank Group, listed on the Nasdaq exchange this year, and memory-chip manufacturer Kioxia is preparing to list American depositary shares. Reuters also reported last year that the Rakuten Card unit of Rakuten Group was weighing a U.S. listing.
