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Tokyo bourse operator to strengthen screening measures: sources
[TOKYO] Tokyo bourse operator Japan Exchange Group Inc will seek to strengthen screening measures for companies looking to go public, including requiring firms to provide the basis of earnings projections at the time of the initial public offering (IPO), two sources familiar with the matter said on Tuesday.
The move comes after mobile game developer Gumi Inc issued a loss warning and plans to cut its workforce just months after raising hundreds of millions of dollars in a stock market listing.
Gumi's shock announcements followed revelations last year of inappropriate accounting and lack of internal controls at energy start-up Eneres Co Ltd, which went public in late 2013, raising questions over whether it should have been allowed to list on the Tokyo Stock Exchange.