TOKYO, OCT 23 – Shares in Tokyo Metro, one of the world’s busiest subways, surged nearly 50 percent when listed on the stock exchange today after the state owner raised US$2.3 billion in Japan’s biggest initial public offering (IPO) in six years.
Every day about 6.5 million more people than the London Underground ride the Tokyo Metro’s nine lines, part of an extensive transport network serving the capital and its suburbs.
The company’s shares closed at 1,739 yen, up 45 percent from the issue price of 1,200 yen. Previously it was up 47 percent.
The proceeds of the 348.6 billion yen will repay reconstruction bonds issued after the 2011 earthquake, tsunami and nuclear disaster in northeastern Japan that killed 18,000 people.
The listing reduces government ownership, split between the country and the city of Tokyo, to about 50 percent. Many Japanese train operators have already been privatized.
To attract investors, perks for buying more than 200 shares include tickets to the Tokyo Metro museum and golf course, as well as free tempura toppings at noodle stalls across the country.
Reports said the issued shares were 15 times oversubscribed among investors.
The IPO is Japan’s largest since tycoon Masayoshi Son’s technology and telecommunications conglomerate SoftBank Group raised US$23.5 billion by listing its mobile unit in 2018.
London built the first public subway, but in 1927 Tokyo became the first Asian city with a subway. – AFP
