ISP's NASDAQ plan reveals Japan's Internet challenge.(Internet Initiative Japan)(Company Financial Information)

One of Japan's largest ISPs will be the first Japanese company to launch an initial public offering (IPO) on the U.S. NASDAQ stock exchange as Japan wrestles with how to fund its aspiring Internet stars.

Internet Initiative Japan (IIJ) said it will issue the equivalent of 6.6 million common shares on the NASDAQ electronic stock market. The stock will be sold as American Depository Shares, a mechanism under which investors in the U.S. can purchase the shares of foreign-based companies. IIJ hopes to raise about $150 million, according to press reports in Tokyo.

A spokeswoman at IIJ said the company hopes the offering will raise its profile in the world's most vibrant Internet market.

"We want to gain a …