Walkways with subway line signs in Tokyo subway stations.
Bruce Byrne | Image Gallery | Getty Images
Japanese subway operator Tokyo Metro’s IPO performed well, with its stock price rising more than 40% on Wednesday.
The company raised 348.6 billion yen ($2.3 billion) last year largest initial public offering Six years later in Japan. Stocks are priced at its top The price range is 1,100 yen to 1,200 yen.
Tokyo Metro is one of Japan’s leading subway companies and the largest operator in Tokyo. The company is currently jointly owned by the Japanese national government and the Tokyo Metropolitan Government, which hold 53.4% ​​and 46.6% of the shares respectively.
Reuters reported that the overall IPO was oversubscribed by more than 15 times, while the portion available to retail investors (almost four-fifths of the overall size) was oversubscribed by about 10 times.
Reuters reported that domestic and foreign institutional investors could subscribe for 1.5% and 20% of the shares respectively, with oversubscription exceeding 20 times and 30 times.
Jesper Koll, expert director at Japan’s Monex Group Tokyo financial services firm, said the IPO was warmly welcomed as the company is a “cash cow”. He added that Tokyo Metro is a “high dividend, stable cash flow generator” and that the company’s operating risk is very low.
“So whether you are Mr. Watanabe (a retail investor) … whether you are a global investor or an institutional investor, this is a stock worth owning.”
Mio Kato, founder of LightStream Research, told CNBC’s “Asian road signLast week, the stock was priced “relatively cheap” and described as “one of the big IPOs of the year.”
Japanese stocks have soared in 2023, with the country being Asia’s best-performing market last year, rising more than 28%. In 2024, the country’s benchmark Nikkei 225 index hit a record high, with a year-to-date gain of 16.41%.
