(Bloomberg) — Tokyo Metro Co. raised ¥348.6 billion ($2.3 billion) after the company priced its shares at the top of the marketed range, in a show of hot demand for Japan’s biggest listing in six years.
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The subway operator priced its shares at ¥1,200 apiece after marketing them in a range of ¥1,100 to ¥1,200 each. The company expects to list the shares in Tokyo on Oct. 23.
The IPO is Japan’s biggest since SoftBank Corp.’s $21 billion listing in December 2018, according to data compiled by Bloomberg. IPOs in Japan have raised $1.6 billion this year, and Tokyo Metro’s listing, combined with other deals, lifts that figure closer to the $4.4 billion raised in all of 2023.
Katsumi Udagawa of Ichiyoshi Securities Co.’s Investment Information Department said he expects “the market will be revitalized” and more large-scale IPOs could emerge after the Tokyo Metro offering.
The deal had drawn significant attention from global investors, with long-only funds having covered the IPO’s entire international order book, Bloomberg News reported last week. The IPO’s domestic portion, which makes up 80% of the deal, had also been covered, people familiar with the matter said.
In addition to the attractive dividend, there is a sense of security about the company’s performance, and that “the stock can be bought like a bond,” said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.
Tokyo Metro, which was established in 2004, operates nine train lines and carries on average about 6.52 million passengers per day. Japan’s government owns 53.42% of the company while the Tokyo Metropolitan government owns the remaining 46.58%. Their combined shareholding will halve following the offering.
Nomura Holdings Inc., Mizuho Financial Group Inc. and Goldman Sachs Group Inc. are joint global coordinators for the offering.
–With assistance from Katsuyori Suzuki and Nao Sano.
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