The value of Japan’s initial public offering market dropped in the first half of this year to $1.7bn, the lowest level of flotations since the late 1990s.

Most IPO specialists see the fall as a temporary phenomenon, that has not been helped by unflattering comparisons with a bumper 2006 that saw $18.4bn of IPOs in 199 deals according to Thomson Financial. The number of IPOs also has slowed to 74 this year.