Tokyo Metro Stock Surges 40% in Market Debut as Japan’s Biggest IPO Since 2018

About this update from Tokyo Metro Co Ltd

Tokyo Metro’s nine lines stretch for a total of 195 kilometres (121 miles) and transport more than 6.5 million people every day. Shares of Tokyo Metro TSE:9023 rose more than 40% on Wednesday after the subway operator found its way to the public market. It was Japan’s biggest initial public offering (IPO) since 2018 when SoftBank floated shares to the mass market at a $21 billion valuation. The company raised ¥348.6 billion ($2.3 billion) and shares were priced at the top-end of the IPO price band of ¥1,100 to ¥1,200. What’s Tokyo Metro? Now a public company, Tokyo Metro is Japan’s largest subway operator in Tokyo and one of the top players in the industry nationwide. Until today, it was owned jointly by Japan’s national government and the Tokyo metropolitan government with stakes of 53.4% and 46.6%, respectively. Both entities sold half of their stakes. Tokyo Metro has nine lines under the megacity, which transport more than 6.5 million every day. Early reports say that the IPO was a hot commodity on day 1 — oversubscribed more than 15 times. Shares available to retail investors, about four-fifths of the total size, were oversubscribed 10 times. Tokyo Metro is profitable, too — its net profit for the fiscal year ended March grew 67% to ¥46.26 billion as revenue grew 13% to ¥389.27 billion.

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