[2026 IPO Watch] i GRID Solutions (603A) IPO Price Forecast: Can This Profitable GX Stock Beat Its 770 Yen Offer Price?

Hey everyone, Hirokichi here.

On July 29, 2026, i GRID Solutions (ticker 603A), a solar power services company, is set to list on the Tokyo Stock Exchange Growth Market. It’s one of this year’s most-watched GX (Green Transformation) IPOs, and with the offer price fixed at 770 yen, a lot of people are asking how high the first trading price (the “IPO pop”) might go. In this post I’ll walk through 603A’s business, financials, IPO price forecast, and the risks worth knowing, from my own perspective.

What is i GRID Solutions? Japan’s No.1 on-site PPA solar company

i GRID Solutions installs solar panels on the rooftops of commercial and logistics facilities and sells the power under long-term “on-site PPA” (power purchase agreement) contracts. The company has ranked No.1 in Japan for PPA development for three years running, with a cumulative track record of 1,461 facilities and 390MW of on-site solar as of the end of March 2026 (source: company disclosures).

The business runs on two pillars: the GX Solutions segment and the Energy Trading segment. In the GX Solutions segment, the company installs rooftop solar equipment under PPA contracts that typically run for 20 years. In the Energy Trading segment, it resells the surplus power generated by the GX Solutions segment to corporate and household customers. The two segments support each other, and the PPA service’s gross margin came in at a high 39.2% for fiscal year ended June 2025.

The company’s biggest edge is its proprietary AI platform, “R.E.A.L. New Energy Platform (REAL, real-time energy AI system).” It forecasts each facility’s power generation and consumption in 30-minute intervals and circulates surplus power efficiently, backed by roughly 20 years and 8,000-plus facilities’ worth of electricity data. As of the end of March 2026, it was deployed at about 1,740 sites, which is a key differentiator from competitors.

Listing July 29 on TSE Growth: 770 yen offer price, book-building range, and lead underwriter

Here’s a summary of 603A’s IPO schedule and terms (source: company disclosures and IPO information sites).

The fact that the range was raised from the initial 710 yen indicative price up to 770 yen, and the offer price then landed at the very top of that range, tells us institutional demand was strong. It looks like interest in the GX growth theme combined with the market’s positive read on a business that has already turned profitable.

As this chart shows, one notable feature of this IPO is that the secondary offering (shares sold by existing shareholders) makes up roughly 75% of the deal. Most of that secondary offering comes from corporate shareholders such as Kansai Electric Power and Sigmaxyz Holdings cashing out, and those shareholders are not subject to any lock-up. On the other hand, the largest shareholder, Itochu Corporation (24.7% of voting rights), is not participating in the secondary offering and is keeping its stake, which works as a supportive factor for supply-demand balance.

Is the IPO price forecast in the 900-1,000 yen range? Checking the valuation and PER

On the all-important question of the IPO price forecast, most Japanese IPO information sites are pointing to a range of roughly 900 to 1,000 yen against the 770 yen offer price, with one site putting an AI-based estimate at around 957 yen. Measured against the original 710 yen indicative price, that works out to roughly +26.8% at 900 yen, or over +40% at 1,000 yen.

One useful reference point for how far the stock could realistically be bid up is the forward PER (price-to-earnings ratio, a common valuation yardstick) based on the 770 yen offer price. Estimates put it at roughly 14x for the fiscal year ending June 2026 and roughly 12x for the year ending June 2027. With plenty of Growth Market names trading at forward PERs in the tens or more, a low-teens multiple for 603A looks reasonably grounded once you factor in its earnings growth, and several analysts describe the current valuation as “not obviously overheated.”

That said, there are some caveats. The deal size of roughly JPY 9 billion is mid-sized, and the secondary offering far exceeds the new-share offering, both of which are cited as factors that could cap the upside. It’s also worth remembering that the higher the offer price was already set, the less room there is for the stock to look cheap if the IPO pop is unusually large.

Back to profit in FY6/2025: checking the earnings and growth drivers

603A’s earnings have been climbing steadily as its PPA contract base builds up. In the most recent fiscal year ended June 2025, revenue came to JPY 22.94 billion, ordinary income was JPY 2.39 billion (about 2.1x the prior year), and net income was JPY 1.596 billion, swinging back to profit after a net loss the year before (source: company earnings materials). For the fiscal year ending June 2026, the company is guiding for revenue of JPY 25.46 billion (+11.0% year on year) and ordinary income of JPY 2.49 billion (+4.5%).

What this chart tells us is that both revenue and ordinary income are on a steady uptrend from the FY6/2025 actual figures into the FY6/2026 guidance. The reason profit growth (a single-digit percentage) lags a bit behind revenue growth (double digits) is that the company is front-loading costs for growth, including more headcount and higher depreciation tied to PPA equipment and its AI platform. Operating margin guidance sits at 12.7% for FY6/2026 and 12.4% for FY6/2027, staying in the low-teens range.

Tailwinds behind the growth story: GX policy and AI-driven power demand

A key part of 603A’s long-term story is the tailwind from its operating environment. According to a 2022 survey by Yano Research Institute, Japan’s PPA-based solar power service market is projected to grow roughly 18-fold, from JPY 3.8 billion in fiscal 2021 to JPY 70 billion by fiscal 2030. The Japanese government has also set a target in its 7th Strategic Energy Plan to raise the renewable energy share of the power mix from 40% to 50% by fiscal 2040, so policy support looks set to continue (sources: Yano Research Institute, Ministry of Economy, Trade and Industry).

The other major tailwind is surging data center electricity demand driven by the spread of AI. Estimates from Japan’s Ministry of Economy, Trade and Industry suggest power demand from data centers and AI infrastructure could grow by 2030 to a scale equivalent to five to seven nuclear reactors. As surging power demand pushes companies to secure their own renewable power and lock in electricity costs, that plays directly into 603A’s business model of supplying power at a long-term fixed rate.

Risks to know before investing: supply-demand, business, and financial risks

For all its appeal, there are risks worth understanding before making an investment decision. The first is the supply-demand issue mentioned above: the high proportion of secondary shares and the potential for further sales by corporate shareholders that are not under lock-up. Venture capital shareholders are under lock-up until January 24, 2027, but selling pressure after that lock-up expires is also worth keeping in mind.

The second is business risk. Because 603A’s PPA contracts are fixed-rate agreements that typically run for 20 years, the company may not be able to revise its rates even if major inflation hits down the road. Rising costs for solar panels and construction labor could also squeeze margins by pushing up development costs.

The third is financial risk. Because the company has poured significant capital into its own equipment, its equity ratio stood at a relatively low 15.8% as of the end of FY6/2025, and long-term borrowings run to roughly JPY 26.9 billion. While the stable cash flow from its PPA contracts should support debt repayment, rising interest rates could still add to interest expense. It’s also worth noting the company has never paid a dividend since its founding and plans to prioritize growth investment for the foreseeable future.

Wrap-up: 603A’s IPO is one to watch for both the first-day pop and the secondary market

i GRID Solutions (603A) stands out for combining Japan’s No.1 position in on-site PPA solar with a profit base that already turned positive in FY6/2025. With two tailwinds behind it, GX policy support and AI-driven power demand, most IPO forecasts put the first trading price somewhere in the 900-1,000 yen range, above the 770 yen offer price.

At the same time, there are things to watch, including the supply-heavy deal structure, the business risk that comes with long-term fixed-rate contracts, and a relatively low equity ratio. An IPO isn’t just about the first trading price. how you approach it in the secondary market matters too. Rather than chasing the theme alone, I think this is a name worth judging on the balance between its earnings growth and its valuation. If you’d like to see how I track my own portfolio, here’s the full record of my asset disclosure series.

Let’s keep at it, slow and steady. See you next time!

日本語版はこちら → アイ・グリッド・ソリューションズ（603A）の初値予想（日本語版）

* This article is for informational purposes only and does not recommend any specific investment. Please make investment decisions at your own responsibility.

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