SKN | Mizuho Challenges Nomura With Major US IPO Deals and Access to Japan’s Retail Capital

Key Points

• Mizuho Financial Group is strengthening its position in Japan’s equity capital markets through major international offerings, including Anthropic, SpaceX and PayPay.
• The Japanese tranche of Anthropic’s planned listing could raise as much as US$3.5 billion, potentially making it the country’s largest IPO-related offering since SoftBank’s 2018 debut.
• Mizuho is combining its expanded US investment banking presence with its domestic retail distribution network to compete with Nomura in a Japanese IPO market experiencing a prolonged slowdown.

Mizuho Builds a Competitive Position Through Global IPOs

Mizuho Financial Group is establishing a stronger position in Japan’s equity capital markets by connecting international technology companies seeking substantial fundraising with the country’s large pool of household savings.

The bank’s involvement in Anthropic PBC’s planned listing represents the latest major transaction in a series of international offerings in which Mizuho has secured an important role. The Japanese portion of the proposed transaction could raise as much as US$3.5 billion, providing the Claude developer with access to Japanese retail investors without requiring a domestic stock exchange listing.

The transaction highlights a strategy that combines Mizuho’s growing international investment banking capabilities with its established domestic distribution network. This approach is increasingly relevant as Japan’s traditional IPO market experiences a shortage of large domestic transactions.

Mizuho has spent more than a decade expanding its US presence as part of its ambition to become Asia’s leading investment bank. That investment has helped strengthen relationships with international issuers and improve its ability to participate in major global equity offerings.

The bank is now using those relationships to compete more directly with Nomura Holdings, historically one of the dominant institutions in Japanese equity underwriting.

Japan’s Household Savings Create a Significant Distribution Opportunity

Japan offers international issuers access to a substantial pool of potential retail investment capital. Household financial assets total approximately ¥2.4 quadrillion, equivalent to around US$15 trillion, according to the Bank of Japan. Roughly half of those assets are held in cash and deposits.

For foreign companies seeking to broaden their investor base, this represents an important source of potential demand. Mizuho’s domestic banking network provides an established channel through which international offerings can reach Japanese households.

The bank’s position in global transactions also creates a potential competitive advantage beyond the immediate underwriting revenue. Participation in high-profile international IPOs can increase its visibility among domestic investors, while demonstrating access to Japanese retail capital can strengthen its appeal to global companies seeking distribution support.

This relationship creates a reinforcing commercial model: international investment banking relationships support domestic product distribution, while access to Japanese retail investors can help the bank secure additional roles in future global transactions.

Anthropic, SpaceX and PayPay Strengthen Mizuho’s Deal Credentials

Anthropic follows SpaceX and PayPay as another significant international offering involving Mizuho’s Japanese distribution capabilities.

The bank participated in the SpaceX transaction, which raised US$2.2 billion from Japanese retail investors. It also handled the Japanese tranche of PayPay’s listing, backed by SoftBank Group. PayPay’s transaction was described as the largest listing by a Japanese company on a US stock exchange in a decade.

The proposed Anthropic offering could become another landmark transaction. Its Japanese tranche alone is expected to be the largest in the country’s market since SoftBank Corp’s 2018 debut, based on the reported transaction comparisons.

These deals have used a structure known as a public offering without listing, or POWL. Under this arrangement, foreign issuers can sell shares directly to Japanese retail investors at the same time as an offshore IPO without listing those shares on the Tokyo Stock Exchange.

The structure allows international companies to access Japanese household investment capital while maintaining their primary listing arrangements elsewhere. For Mizuho, it creates an opportunity to apply its domestic distribution infrastructure to transactions originating in major international markets.

Mizuho Gains Ground in International Equity Capital Markets

Mizuho’s growing international profile is reflected in its position in the global equity and equity-linked league table. It ranked 18th, making it the highest-ranked Japanese bank, compared with Nomura’s 21st position.

Nomura continues to hold a substantial position in Japan’s domestic IPO market, having commanded more than a quarter of the country’s IPO activity. However, the prolonged decline in domestic listings has increased the strategic importance of international transactions.

Japan’s domestic IPO market has reached its lowest level of activity in 13 years, reducing the availability of large local deals for investment banks. In this environment, international offerings provide an alternative source of transaction activity and an opportunity to build relationships with global issuers.

Mizuho’s expansion demonstrates how international dealmaking can complement a domestic banking franchise. Its ability to secure roles in major US-related transactions while distributing shares to Japanese retail investors provides a competitive model that differs from relying primarily on domestic underwriting mandates.

The Competitive Implications for Japanese Investment Banking

Mizuho’s progress presents a challenge to Nomura’s traditional dominance in Japanese equity underwriting, although the two institutions retain different competitive strengths.

Nomura continues to benefit from its established domestic market position. Mizuho, meanwhile, is increasingly leveraging its international relationships to access transactions that would otherwise have limited connections to Japan’s domestic IPO market.

The strategy could become more significant if large technology companies continue seeking capital from global retail investor bases. Access to Japan’s household savings pool may become an important consideration for international issuers, particularly when domestic IPO activity remains subdued.

For Mizuho, the opportunity extends beyond individual transaction fees. A stronger international franchise could improve its ability to attract future mandates, deepen relationships with retail investors and strengthen its broader investment banking position across Asia.

Closing Insights

Mizuho’s involvement in the Anthropic, SpaceX and PayPay transactions illustrates how international investment banking expansion can create new opportunities within a mature domestic financial market. By combining US issuer relationships with access to Japan’s substantial household savings, the bank is developing a distribution model that allows it to compete more directly with Nomura.

The broader significance lies in the changing structure of Japan’s equity capital markets. With domestic IPO activity at a 13-year low, international offerings and alternative distribution arrangements are becoming increasingly important. Mizuho’s ability to convert its global relationships into repeat access to Japanese retail capital could strengthen its competitive position, although sustaining that advantage will depend on continued access to major issuers and investor demand for international equity offerings.

For  a confidential discussion regarding retail banking strategy, insurance distribution models, customer loyalty ecosystems, digital financial services, or cross-border financial innovation opportunities, contact our senior advisory team.This article is provided for informational and educational purposes only and does not constitute investment, financial, legal, tax or securities advice. IPO participation, international equity offerings and cross-border investment structures involve market, regulatory, liquidity and currency risks. Potential fundraising amounts and transaction outcomes may change, and participation in an offering does not guarantee investor demand or future performance. Investors should review the relevant offering documentation and seek independent professional advice before making investment decisions.