On July 28th, the Tokyo Stock Exchange sent a written request to 270 listed companies to consider stock splits. At the end of June, purchasing shares in any of these companies cost at least 500,000 yen (approximately $3050), as stocks on the exchange trade exclusively in blocks of 100 shares.
Individual investors want this number reduced. In April 2025, the exchange's administration stated that investors are seeking lots priced around 100,000 yen, significantly lower than the 500,000 yen cap set by the trading platform.
In response, the Tokyo Stock Exchange established a Working Group for Promoting Small-Sized Investments. The group will "consider specific measures and other initiatives aimed at further facilitating small-sized investments," with its meetings set to begin in October.
According to materials attached to the letter, of the 276 companies that decided to split their shares in the 12 months prior to June 30th, about 70% targeted a share price in the hundreds of thousands of yen range.
Before the splits, 45% of the companies in this group had lots priced at 500,000 yen or more. After the splits, according to the exchange's own calculations, that figure was 2%. The sample excluded foreign stocks, REITs, and companies listed on the TOKYO PRO Market.
Across the entire market, 762 companies have decided to split their shares since the Tokyo Stock Exchange's previous request in October 2022.
Some companies are already conducting stock splits. On October 1st, Tokyo Electron, with a lot size of 7.72 million yen, will undergo a five-for-one split, and Organo plans a similar ratio.
