By Kosaku Narioka
Mercari Inc.’s shares rose sharply Wednesday morning after the Japanese e-commerce company said its stock will be upgraded to the Tokyo Stock Exchange’s first-tier section.
Mercari shares were recently 7.1% higher at 2,281 yen after rising as much as 11% earlier.
Mercari said Tuesday after the market closed that the Tokyo Stock Exchange approved its application to change its listing to the prime segment, effective June 7, from the growth segment, where the stock is currently trading.
The prime segment is considered the exchange’s top tier and 1,839 companies were traded in the segment as of April 4.
Mercari said it is spending aggressively on promotion to acquire new users, and on hiring to improve and develop its products. As a result, the company anticipates an operating loss for the fiscal year ending June 30, while it expects sales to grow steadily, it said.
In late April, Mercari projected revenue of 147.00 billion yen ($1.14 billion) this fiscal year, or up 38.5%, and a net loss of Y8.60 billion.
Shares of e-commerce peer Rakuten Group Inc. were recently 0.7% higher and the Nikkei Stock Average was up 0.7%.
Write to Kosaku Narioka at email@example.com