Tokyo Metro Co., operator of the city’s sprawling subway network, made a triumphant debut on the Japanese stock market Wednesday, soaring by as much as 47% above its issue price, Al Jazeera reports.
The IPO, the largest in Japan since 2018, raised $2.3 billion for the company’s government owners.
Shares opened at 1,760 yen ($11.6), surpassing the initial price of 1,200 yen ($7.9) and settling just above 1,700 yen ($11.2). The listing is significant as it marks the first privatization of a state company in Japan since 2016, when railway company JR Kyushu went public.
The Japanese government and the Tokyo Metropolitan Government each sold half of their stakes in Tokyo Metro. To attract investors, the company offered enticing incentives including train tickets and access to its golf range. They also highlighted an above-average dividend yield, forecasting a payout of 40 yen ($0.26) per share for the fiscal year ending 2025.
With nine subway lines and 180 stations, Tokyo Metro is the larger of the Japanese capital’s two major metro operators, transporting an estimated 6.5 million people daily. The company reported a net profit of 46.3 billion yen ($305 million) for the fiscal year ending in March, a 67% increase from the previous year.
