Material Group Inc.

マテリアルグループ

TSE Growth ・ Ticker 156A ・ Listed

Updated Mar 29, 2024

Result on listing day

-8.1%

Offer price

1,180 yen

First traded price

1,085 yen

Selling 100 shares at the first traded price would have produced a loss of 9,500 yen, before fees and tax. 100 shares is the minimum trading unit in Japan.

Application period (book building): 2024-03-13 — 2024-03-18
Lottery result: To be announced
Listing date: 2024-03-29
Cash needed to apply for one lot (100 shares): about 118,000 yen
Offering size (at the offer price): 6.6 billion yen ・ 5,620,100 shares
Market capitalisation at listing: 12 billion yen
Lock-up: Not translated — this is the wording from the Japanese offering documents, kept verbatim so it matches what your broker shows: 既存株主に180日間または360日間(価格解除条項なし)
Company website: https://materialgroup.jp

Brokers you can apply through

You can only enter this lottery through a broker underwriting it. The lead underwriter is Nomura Securities, which receives the largest allocation.

野村證券 SMBC日興証券 SBI証券楽天証券岩井コスモ証券みずほ証券あかつき証券SBIネオトレード証券

Broker pages are in Japanese. A comparison in English is on the brokers page.

What stands out

A group built around PR consulting, with separate specialist companies for product placement, digital advertising, social commerce and press-relations services
Consolidated revenue rose for three straight years, from 4.66 billion yen in the year to August 2023 to 5.28 billion and then 6.29 billion yen in the year to August 2025
In the nine months to May 2026 revenue was 6.66 billion yen and operating profit 1.03 billion yen, up 41.5% and 56.0% on the same period a year earlier

What could go wrong

Spending on advertising and PR moves with the economy, so cuts to client budgets feed straight through to earnings
Revenue and operating profit both hit records in the year to August 2025, but net profit attributable to owners of the parent fell from 709 million yen to 468 million yen
Growth by acquisition lifted total assets from 3.90 billion yen at the end of August 2025 to 6.45 billion yen at the end of May 2026, while the equity ratio fell from 55.4% to 36.1%

About the company

A holding company whose operating subsidiaries provide marketing communications support, centred on PR consulting, that carries a client's products and messages to the media and to consumers.

How it makes money

Material Inc., the core subsidiary, takes on the whole job for a client, from shaping a brand's story through content production, talent casting, PR execution and digital advertising, and earns its money from the fees clients pay for that work. The group also contains Rooms, which places products inside television and other video content, Candlewick, which helps overseas brands enter Japan, Material Digital, which sells the web customer-service tool Flipdesk and a chatbot, Bridge for ad operations, CONNECTED MATERIAL with its press-relations service CLOUD PRESS ROOM, Material Links and Trepro in social commerce such as TikTok Shop, and Material Capital for M&A advice. Combining these companies to suit whatever a client needs is the group's selling point.

Where growth is meant to come from

The group keeps adding specialist companies by acquisition, widening its reach from PR into digital advertising, social commerce and M&A advice. Its own forecast for the year to August 2026 is revenue of 8.96 billion yen, up 42.6%, and operating profit of 1.15 billion yen, up 38.2%. Nine months in, revenue of 6.66 billion yen and operating profit of 1.03 billion yen had already passed the full-year figures for the previous year.

Read about this company in Japanese →

Figures are taken from the offering documents and public sources, and are checked against two independent sources before publication. Nothing here is investment advice. Shares can and do open below their offer price.