Tokyo Metro shares soar in Japan’s biggest IPO in 6 years

Japanese subway operator’s shares soar arsenic overmuch arsenic 47 percent successful biggest listing since 2018.

The main relation of Tokyo’s sprawling subway web has made a rip-roaring marketplace debut successful Japan’s biggest archetypal nationalist offering (IPO) successful six years.

Tokyo Metro Co’s shares soared by arsenic overmuch arsenic 47 percent supra their contented terms of 1,200 yen ($7.9) connected Wednesday, topping 1,760 yen ($11.6) earlier settling conscionable supra 1,700 yen ($11.2).

The listing, which has raised $2.3bn for the subway operator’s authorities owners, is the biggest marketplace debut since conglomerate SoftBank Group raised $23.5bn with the listing of its mobile telephone concern successful 2018.

The IPO besides marks Japan’s archetypal privatisation of a authorities institution since the listing of railway institution JR Kyushu successful 2016.

Under the listing, the Japanese authorities and the Tokyo Metropolitan Government each sold fractional of their stakes.

The IPO comes aft the Japanese authorities passed authorities requiring it to merchantability its shares to repay reconstruction bonds issued aft the 2011 earthquake and tsunami.

To lure investors successful the run-up to the listing, which was heavy oversubscribed, the institution offered perks including bid tickets and introduction to its play range.

The institution besides touted an above-average dividend yield, forecasting a payout of 40 yen ($0.26) per stock for the fiscal twelvemonth ending 2025.

Tokyo Metro Co, which operates 9 subway lines and 180 stations, is the larger of the Japanese capital’s 2 large metro operators – the different being Toei Subway – transporting astir 6.5 cardinal radical each day.

The institution posted a nett net of 46.3 cardinal yen ($305m) for the fiscal twelvemonth that ended successful March, a 67 percent leap from the erstwhile year.