Tokyo Metro Shares Soar Over 40% in Debut After Oversubscribed IPO, Japan's Largest in Six Years

Oct 22, 2024, 09:12 PM

Tokyo Metro, Asia's oldest subway operator and one of the world's largest subway systems, has gone public in Japan's biggest initial public offering (IPO) in six years. The IPO attracted strong interest from both domestic and foreign investors, with overall demand exceeding 15 times the shares on offer and foreign investors seeking more than 35 times the available shares. To entice retail investors, the company offered unusual perks such as free tempura and golf opportunities. On its trading debut on Wednesday, Tokyo Metro's shares opened at 1,630 yen, soaring over 40% from the IPO price of 1,200 yen per share, though trading was untraded at times amid excess buy orders. The strong debut is seen as a test of the bullish sentiment in the Japanese stock market. Tokyo Metro operates nine lines in Tokyo, serving six and a half million passengers daily, and derives over 80% of its operating profit from carrying passengers on trains.