Tokyo Metro to seek record 700b yen IPO

Japan and Tokyo governments aim for a 700 billion-yen ($4.7 billion) valuation for Tokyo Metro ahead of its potential listing by the end of October. This would mark Japan’s largest IPO in about six years.

The two government entities, which collectively own 100 per cent of Tokyo Metro, are set to hold a briefing for brokerages next week to discuss the IPO plans. They anticipate securing approval from the Tokyo Stock Exchange by mid-September.

A potential sale of half the company could raise 350 billion yen, surpassing the size of Kokusai Electric’s IPO last year and becoming the largest since SoftBank Group’s 2018 listing of its wireless unit.

Tokyo Metro operates 195 kilometers of subway lines, transporting 6.5 million passengers daily. The company’s revenue has rebounded strongly from the COVID-19 pandemic, with net profit soaring by two-thirds to 46 billion yen in the fiscal year ended March 2024.

The Japanese government plans to use the IPO proceeds to repay reconstruction bonds issued after the 2011 earthquake and tsunami. Nomura, Mizuho, and Goldman Sachs have been appointed as joint global coordinators for the listing.

Attribution: Reuters

Subediting: M. S. Salama