Tokyo Metro Shares Surge in Japan’s Largest IPO Since 2018
Shares of Tokyo Metro, one of Japan’s largest subway operators, have surged on their debut, marking the biggest initial public offering (IPO) in the country since 2018. The strong market response reflects investor confidence in the company’s growth prospects and the resilience of Japan’s transportation sector.
The IPO raised a significant amount of capital, which Tokyo Metro plans to invest in expanding its network and improving its services. The company is also seeking to capitalize on the growing demand for public transportation in Tokyo, as the city continues to attract a large population and increasing tourism. Tokyo Metro Co’s shares soared by as much as 47 percent above their issue price of 1,200 yen ($7.9) on Wednesday, topping 1,760 yen ($11.6) before settling just above 1,700 yen ($11.2).
The listing, which has raised $2.3bn for the subway operator’s government owners, is the biggest market debut since conglomerate SoftBank Group raised $23.5bn with the listing of its mobile phone business in 2018.
The successful listing of Tokyo Metro shares is a positive sign for the Japanese stock market, which has been relatively subdued in recent years. It could also encourage other companies to consider IPOs and raise capital through the public markets.
