WealthNavi Inc, a Japanese Robo-advisor listed one of the biggest IPOs for the debutant in the Tokyo stock exchange on Tuesday. The fintech company shot high to about 50% from its IPO price of 1,150 yen. The Japanese wealth management raised 17.9 billion yen ($173 million), making it the largest listing company at Tokyo bourse in 2020. Despite being just five years old in the making, WealthNavi Inc’s market value is estimated to be about 52 billion yen.
WealthNavi was founded in 2015 by Kazuhisa Shibayama, a former official from the ministry of finance who aimed to change the equity market in Japan. It’s a fintech company that provides customers with personal asset management with the assistance of Robo-advisors. Initially, when a systematic survey was conducted by the Bank of Japan observed that cash and deposits made the majority of household assets in Japan, with less than 10% invested in stocks. In comparison to the US where 33% of the asset are inequities which led Mr Kazuhisa to develop WealthNavi.
The notable highlight of the company is how it manages everything from the preferred financial instruments to the accumulation and the optimization of taxes to manage the assets of the customers. The development of WealthNavi was to establish the idea of moving away from cash in Japanese society and lead people to invest in the stock exchange. The land of rising sun Japan recently approved the budget of 1 trillion for the next fiscal year. But, is yet to find a ray of light in the financial world with its crippling fiscal health.