Tokyo Metro Co., Japan’s largest subway operator, has successfully raised ¥348.6 billion ($2.3 billion) in its initial public offering (IPO), marking the country’s biggest listing in six years, Bloomberg reports.
The company priced its shares at the top of the marketed range, reflecting strong demand from both domestic and international investors.
The shares were priced at ¥1,200 each, exceeding the initial marketed range of ¥1,100 to ¥1,200. Tokyo Metro is expected to list its shares on the Tokyo Stock Exchange on October 23rd.
This IPO surpasses SoftBank Corp.’s $21 billion listing in December 2018, establishing itself as the largest in Japan since then. With the IPO, Japan’s total IPO proceeds for 2023 have climbed to $1.6 billion, bringing the country closer to its 2022 total of $4.4 billion.
The offering has attracted considerable interest from global investors, with long-only funds fully subscribing to the international order book, as reported by Bloomberg News last week. The domestic portion of the IPO, comprising 80% of the deal, has also been fully subscribed.
Established in 2004, Tokyo Metro operates nine train lines, transporting an average of 6.52 million passengers daily. The Japanese government holds a 53.42% stake in the company, while the Tokyo Metropolitan government owns the remaining 46.58%. This offering will reduce their combined shareholding by half.
Nomura Holdings Inc., Mizuho Financial Group Inc., and Goldman Sachs Group Inc. are acting as joint global coordinators for Tokyo Metro’s IPO.
