Tokyo Metro Co. has successfully raised 348.6 billion yen (approximately $2.3 billion) through its initial public offering (IPO), with shares priced at the high end of the market range at 1,200 yen per share. This IPO marks the largest public offering in Japan in six years, reflecting strong market demand for Tokyo Metro's shares. The stock is set to list on the Tokyo Stock Exchange on October 23.
This IPO is the largest in Japan since SoftBank Group's (SFTBY, Financial) $21 billion IPO in December 2018. Prior to Tokyo Metro's listing, Japanese IPOs had raised a total of $1.6 billion in 2023. With this addition, the total for the year is nearing $4.4 billion. The IPO has attracted significant global investor interest, with international orders fully covered by bullish funds, and the Japanese domestic portion, accounting for 80% of the transaction, fully subscribed as well.
Tokyo Metro, established in 2004, operates nine train lines and transports an average of 6.52 million passengers daily. Prior to the IPO, the Japanese government and Tokyo Metropolitan Government held stakes of 53.42% and 46.58% respectively, which will be reduced by half post-IPO.
Nomura Holdings, Mizuho Financial Group, and Goldman Sachs are the joint global coordinators for Tokyo Metro's IPO. Tokyo Metro representatives declined to comment on specific details of the IPO.
