Tokyo Stock Exchange approved the public listing of Digital Grid on its Growth Market, the renewable energy trading platform operator said on March 18, 2025. The company is set to go public on April 22, 2025.
Digital Grid plans to invest the raised funds in Digital Grid Asset Management, its battery storage development arm.
As of the time of the statement, Digital Grid Asset Management had six storage projects, on which it started working in January 2025, in the pipeline. Those include a 450 million yen project expected to be completed in July 2026 in the Chubu TSO area, a 600 million yen project expected to be completed in July 2029 in the Tokyo TSO area, and a 1.8 billion yen portfolio of four projects around Japan expected to be completed in July 2027.
The company plans to use all of the raised funds, expected to be between 1.1 and up to 2.37 billion yen depending on the exercise of overallotment options, by the end of the fiscal year ending July 2027. Digital Grid plans to use any excess funds not allocated to BESS projects to increase its working capital.
Up to this point, Digital Grid has been focusing on providing a renewable energy and environmental value trading platform. The company has been active in arranging self-wheeling and PPA schemes. Most notably, it has been running virtual PPA auctions and helped coordinate a 69MWAC solar PPA between Vena Energy and LINE and Yahoo! Japan’s parent LY Corporation.
The company grew from 190 million yen in revenues in FY2019 (ended March 2020) to 3.5 billion yen in FY2023 (ended July 2024). It went from making a net loss of 670 million yen in FY2019 to a net profit of 972 million yen in FY2023.
While not directly affecting the funds to be raised by Digital Grid, existing shareholders including Mitsubishi Corporation, Sony Group, Mitsui Chemicals, and Toyota Tsusho among others, will also sell a portion of their shares through secondary offering. Daiwa Securities is serving as the lead underwriter.
Digital Grid’s IPO follows a number of other recently announced sizeable transactions in Japan’s energy industry, including the acquisition and delisting of Renewable Japan by Tokyu Land and the upcoming merger of Toyota Tsusho’s subsidiaries Eurus Energy and Terras Energy. These come amid a transition from the fixed price per kWh feed-in-tariff (FIT) to the market-based feed-in-premium (FIP) support scheme.
