Tokyo Metro’s shares surge in Japan’s largest IPO since 2018

Japanese subway operator’s shares soar as much as 47 percent in biggest listing since 2018.

The Tokyo Metro Co, the main operator of Tokyo’s sprawling subway network, has experienced a remarkable market debut with its shares climbing up to 47 percent above their issue price of 1,200 yen ($7.9). This IPO marks Japan’s largest initial public offering in six years, raising $2.3bn for the government owners of the subway operator.

With this listing, the Japanese government and the Tokyo Metropolitan Government each sold half of their stakes in the company as part of the first privatisation of a state-owned company since 2016.

To attract investors, Tokyo Metro Co offered various perks, including train tickets and access to its golf range. The company also highlighted an above-average dividend yield, projecting a payout of 40 yen ($0.26) per share by the end of the 2025 financial year.

Operating nine subway lines and 180 stations, Tokyo Metro Co is one of Tokyo’s major metro operators, catering to around 6.5 million commuters daily. The company’s stellar performance was evident in its 67 percent increase in net profit to 46.3 billion yen ($305m) in the previous fiscal year.