Introduction
「I'm worried because the company's market capitalization is low.Are you experiencing any of the following problems?
The Tokyo Stock Exchange (TSE) has mandated that listed companies establish IR (Investor Relations) systems, dramatically changing the market environment. In particular, there has been an increase in cases where companies with a market capitalization of less than 1 billion yen or those considered "on the verge of delisting" have recovered through steady efforts.
This time, we will analyze the example of a local newspaper company listed on the Tokyo Stock Exchange Growth Market (growth stock market) that tripled its number of shareholders in just one year, going from having the lowest market capitalization, and introduce specific investor relations (IR) know-how to maintain its listing.
While it's often thought that acquiring shareholders is only for large corporations, this case study will reveal ways of engaging with investors that are applicable to small and medium-sized enterprises and local companies as well.
If you're struggling with "company fundraising" and "accountability to stakeholders," this article should offer some helpful insights.
Three key points to increase company value through IR (Investor Relations)
The Tokyo Stock Exchange has requested listed companies to establish investor relations (IR) systems, with the intention of making them realize that "dialogue with shareholders and investors" is directly linked to a company's survival in this era.
The most important lesson from this case is as follows:
Competition to attract investors is intensifying: More and more companies are aiming to secure "stable holdings" (fan shareholders) in the stock market. In particular, there are cases where companies at risk of delisting have recovered to the point of receiving meeting requests from institutional investors through steady investor relations activities.
Position shareholders not as "enemies" but as "allies": While a low market capitalization carries the risk of being seen as a "potential delisting candidate," it's crucial to turn this to your advantage and "increase contact with investors." While the "survival competition" in the stock market is unavoidable, the companies that win are those that "can communicate with shareholders."
Investor Relations (IR) system development = Shareholder acquisition: IR (Investor Relations)This is not simply about conveying information to investors, but also a means to achieve concrete results, such as "tripling the number of shareholders."
Specific facts that should be put into practice
Based on this example from a local newspaper company, here are some concrete action plans that companies can immediately implement.
Make IR personnel part of the "management team":
Even when the IR (Investor Relations) representative was effectively absent, they were "almost always present when the CEO met with investors, absorbing the CEO's perspective." This allowed us to align the company's direction both internally and externally.
Redefining the business and changing the strategy:
Instead of relying on the free paper business, which the market doesn't expect much from, we redefined new revenue streams that leverage our established logistics systems and data as the "pillar of our strategy." IR (Investor Relations) was no longer just about public relations; it was about changing the "company's growth story."
Internal mindset reform (aligning goals):
To increase stock prices and market capitalization, it is essential to align the entire company's goals. To that end, they displayed the daily market capitalization at the company entrance to increase all employees' interest in the stock price.
How to increase contact with investors
The specific actions taken by the IR representative are as follows:
Participation in investor eventsAdd:
We continuously increased our "points of contact" with investors by distributing our own free newspaper and expanding our shareholder benefits.
IR materials utilizing the posting site (note)Fee:
We included background information and interviews with management that couldn't be fully covered in the IR materials, and we turned the "market capitalization of 1 billion yen" hurdle into an advantage to help people understand the company more deeply.
Background to the Tokyo Stock Exchange's reforms and the future market environment
To understand this case, it's necessary to know the background behind why an "IR system" has now become mandatory. Furthermore, changes in the market environment with a view to the future are also crucial.
Moves to strengthen regulations on the Tokyo Stock Exchange
Corporate Code of Conduct as of July 2025:
The Tokyo Stock Exchange has mandated that listed companies establish investor relations (IR) systems.
If the necessary systems are not in place at all, the company may be subject to public disclosure measures. This is not merely a violation of the rules, but a risk that demonstrates a lack of "the ability to communicate with shareholders and investors."
Increase in market capitalization criteria:
The growth market has criteria such as "market capitalization of 4 billion yen or more after 10 years of listing," but the Tokyo Stock Exchange has indicated its intention to raise these criteria. In September 2025, it announced that it would raise the criteria for the growth market from 2030 to "market capitalization of 10 billion yen or more after 5 years of listing." Currently, about 60% of companies are below 10 billion yen in market capitalization, so this will be a tough condition for many companies.
Changes in the market environment and risks
The increase in active shareholders (shareholder activists):
As a publicly listed company, engaging with shareholders and investors is a minimum responsibility. Active acquisition of shares can now happen to any company, so "dialogue with the market only after a crisis occurs" is too late.
Corporate attitudes towards investor relations (IR) are becoming polarized.
According to a survey by Sumitomo Mitsui Trust Bank, the number of companies not conducting investor relations (IR) activities was 21 TP3T on the Tokyo Stock Exchange Prime Market and 61 TP3T on the Growth Market, but reached a high level of 241 TP3T on the Standard Market. This is due to the lax listing maintenance standards, on the other handCompanies that cannot build relationships with shareholders and investors will be eliminated.It is possible that this will happen.
Summary
The stock market environment was once even a "platform where companies could raise capital." However, times are changing dramatically. As evidenced by the reforms at the Tokyo Stock Exchange, it is becoming clear that "shareholders" are not simply "people who put up money and then leave."
In these times, the awareness and responsibility that a listed company should have should come from within, rather than from external pressure. What is called "developing an investor relations (IR) system" should be seen not merely as complying with obligations, but as building a foundation for trusting relationships with society as a whole.
In this case study, we've seen how a company on the brink of collapse struggled to increase its number of shareholders and maintain its listing on the stock exchange. It was a serious battle for the company's very survival.
The key to success is not just "strategy" or "funding," but also "dialogue." It's about aligning internal goals and ensuring external investors deeply understand the company's value. While competition for survival in the stock market is unavoidable, the key to winning in that environment may be becoming a company that can "dialogue with its shareholders."
The era of "it's okay as long as it's profitable" is over. Neglecting to build relationships with all stakeholders—customers, employees, and investors—is nothing less than an act that jeopardizes one's own survival. The "improvement of the investor relations system" demonstrated in this case is not merely about complying with rules, but rather a mirror for re-evaluating one's own values.
It is clear that it is too late to engage in dialogue with the market only after a crisis has occurred. Building trust with shareholders and investors on a regular basis will ultimately lead to the stable growth of the company. Furthermore, while competition for survival in the stock market is unavoidable, if we view it as an "opportunity for dialogue," it can be seen not merely as risk management, but as a wonderful opportunity to enhance the company's value.
