The Tokyo Stock Exchange, after a number of false starts, is finally getting ready to list. The world’s second biggest stock exchange by total market capitalisation on Friday hired a trio of investment banks to launch its long-anticipated initial public offering.

Given the fervour in the sector, the addition of a new heavyweight – possibly as early as the end of 2008 – ought to have investors salivating. A listing would move the TSE on to the radar of both strategic investors – other bourses hungry for consolidation – and financial sponsors. The TSE has already stitched up a number of loose alliances and the New York Stock Exchange is pushing for an equity holding. For its part, the TSE is beefing up derivative products and wooing companies from neighbouring countries to list their shares in Japan.