Japan IPOs slump: First-day flops hit six-year high amid Iran war jitters

• Japan's primary market shows stress with a string of weak stock market debuts, marking the longest run of first-day IPO declines since 2020.
• Geopolitical tensions involving Iran are denting investor appetite for risk, leading to caution on newly listed stocks.
• Shares of J-Pharma slumped 22% and Basic fell 8% on their trading debut, extending a worrying trend of companies opening below offer price.
• Only seven IPOs priced in Japan in Q1 2026, the weakest first-quarter issuance since 2011, indicating a sharp slowdown in primary market activity.
• Structural changes like banks pivoting to larger deals and tighter listing requirements by the Tokyo Stock Exchange also contribute to the downturn.