LONDON, UK: Ikigai Ventures, (LON:IKIV) an investment company established to acquire businesses focused on having a strong positive social impact, announced its intention for the company’s shares to be admitted to the Standard Listing segment of the Official List and to trading on the Main Market of the London Stock Exchange.

Highlights

•	The Company was incorporated in 2021 to undertake the acquisition of one or more companies or businesses that have a strong positive social impact and/or ESG strategy as part of their core business in Asia
•	A prospectus has been published in connection with the proposed admission of the Company’s share to the Standard Listing segment of the Official List and trading on the Main Market of the London Stock Exchange. The Prospectus is available on the Company’s website at: https://ikigaiventuresltd.com/reports-documents/
•	Trading in the Company’s shares on the London Stock Exchange is expected to commence on or around 15 September 2022

Background

Ikigai, (pronounced “ee-key-guy”) is a Japanese concept that means, amongst other things, a reason for being and refers to having a direction or purpose in life. Although the origin of the word can be traced back to the Japanese Heian period of 794-1185, the Directors believe this age-old ideology has a growing significance in the 21^st century corporate world with reference to businesses increasingly emphasising a positive social impact as well as ESG (economic, social, governance) strategies as their primary focus.

The Directors believe that ikigai is not simply a fashionable statement about sustainability or corporate social responsibility, they believe that companies increasingly have elements of sustainability and ESG at their core and that there is a significant opportunity for investment in the sector, especially in Asia.

The shift to incorporate sustainability into the core business models of business, has most notably been seen by BlackRock, one of the world’s largest asset managers, with approximately $7 trillion assets under management globally, who announced several unprecedented initiatives to place sustainability at the centre of its investment approach – “a significant shift that could have wide reverberations for companies globally”. The reasons for these “unprecedented initiatives”, according to Blackrock, include:

•	future financial decision-makers are asking more from companies and are seeking more sustainable investment solutions;
•	regulators and governments are expanding their focus on incorporating sustainability into investment information and decision making; and
•	there is growing recognition that ESG research and analysis can potentially identify investment risks and generate excess returns.

According to the website, worldfinance.com, PWC is reported to predict that US$7.5 trillion will be invested into sustainable products by 2025 with US$1 trillion of those as ESG funds in Europe. The Directors believe that this age-old ideology of ikigai can be viewed as an influence on a growing proportion of mainstream investment decision makers in the 21^st century and thereby creating opportunities for acquisitions.

Acquisition Strategy

The Company has been formed to undertake acquisitions of target companies or businesses which have sustainability, a strong positive social impact and/or ESG strategy as part of their core business. The Company does not have any specific acquisitions under consideration and does not expect to engage in substantive negotiations with any target company or business until after Admission. Consideration for an acquisition is likely to be funded through a combination of the issuance of new ordinary shares or convertible debt securities to the shareholders of the acquisition as well as through capital raised on Admission.

The Directors expect that the target business will have a sustainable business model which will allow it to expand globally. While there is no restriction as to the geographical location of the target business, the Directors expect that the first acquisition(s) will most likely take place in Asia-Pacific or into a target business outside of Asia-Pacific with the potential to expand quickly into the Asia-Pacific region, due to the extensive experience and network of the Company’s CEO, advisors, and key management personnel.

The acquisition may comprise the acquisition of a single company or business or a series of acquisitions by way of a “roll-up” strategy whereby the Company acquires and merges several businesses in a particular sector. The benefits of this strategy include the reduction of total overhead costs, leveraging a diverse client base, speed to enter new markets and possibly having a wider geographical reach.

Any acquisition will be driven by and subject to Board approval. It is envisaged that the determination of the Company’s post-acquisition strategy and whether any of the Directors will remain with the combined company and on what terms, will be settled at or prior to the completion of the acquisition.

It is envisaged that the Company will seek to acquire target businesses which have one or more of the following key characteristics:

•	a strong positive social impact and/or ESG strategy behind them;
•	an experienced management team that has a proven track record;
•	growth potential beyond its home market, ideally with the potential to expand globally;
•	a solid reputation with customers and/or clients; and
•	shareholders who are willing to accept shares or other securities in the Company as a significant part of the consideration for their businesses.

The Directors will consider investing into start-ups if some of the above criteria are met, particularly if the management team is experienced and has a strong network.

Nicholas Bryan-Brown, Chief Executive Officer of Ikigai Ventures, said: “I am delighted to announce the plans to list Ikigai on the London Stock Exchange. The ESG sector is in a strong state of growth, not least in Asia, and we believe there are attractive long term acquisition opportunities in the sector. We plan to use Ikigai Ventures as a vehicle to acquire one or more exciting businesses in these areas in order to generate attractive returns for our shareholders.”