Tokyo Metro is Japan’s largest IPO since SoftBank Group listed its telecommunications unit in late 2018.
Tokyo Metro is expected to raise 348.6 billion yen ($2.3 billion) after pricing its initial public offering at the high end of its range, according to two sources familiar with the matter, in Japan’s biggest IPO in years six.
The IPO was oversubscribed more than 15 times, the sources said, with the company’s dividend yield seen as an attractive proposition by many including retail investors attracted by the household name.
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The company priced the shares at 1,200 yen each, compared with a range of 1,100 to 1,200 yen, according to the sources, who declined to be identified as the information is not public.
The portion available to retail investors, which accounts for about four-fifths of the total, was almost 10 times higher, sources said.
Shares available to domestic and foreign institutional investors, amounting to 1.5 percent and 20 percent respectively, were more than 20 and 30 times oversubscribed, sources said.
Tokyo Metro declined to comment.
One of Tokyo’s two largest subway operators, the company will announce prices later on Tuesday and list on the Tokyo Stock Exchange on Oct.
The company Tokyo Metro paid a dividend of 3.3%.
“That stands out compared to other private trains and JR,” said Kazumi Tanaka, an analyst at DZH Financial Research.
“In addition to the stability of the railway business, we can expect growth in the increase of incoming vehicles,” he added.
The central government, which owns 53.4 percent of Tokyo Metro, and the Tokyo government, which owns the remaining 46.6 percent, sold half of their shares in the IPO.
Tokyo Metro, Japan’s biggest IPO since SoftBank Group listed its telecommunications unit in late 2018, is joined by Rigaku, the Carlyle Group-backed maker of X-ray inspection equipment, which is also planning an IPO in October.
Bain Capital scrapped chip maker Kioxia’s planned IPO this month after investors pushed for a lower price than the company was targeting, Reuters reported.
(Only the headline and image for this report may have been reused by Business Standard staff; other content is automatically generated from the trade feed.)
First published: October 15 2024 | 9:08 AM IST
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