Tokyo Metro: Asia's oldest subway goes public

TOKYO

Shares in Tokyo Metro, one of the world's busiest subways, soared almost 50 percent on its debut on Wednesday after its government owners raised $2.3 billion in Japan's biggest initial public offering in six years.

Each day around 6.5 million people, more than the London Underground, ride Tokyo Metro's nine lines, part of a vast transport network serving the capital and its sprawling suburbs.

London built the first public underground railway, but in 1927 Tokyo became the first Asian city with a subway.

The company's shares surged to 1,739 yen, 47 percent up from their issue price of 1,200 yen.

The listing reduces government ownership, split between the nation and Tokyo city, to around 50 percent.

Many Japanese rail operators are already privatised.

To attract investors, perks for buying more than 200 shares included tickets to the Tokyo Metro museum and golf range, as well as free tempura toppings at its noodle stands.

Reports said the issue was 15 times oversubscribed among investors.

The IPO is Japan's largest since tycoon Masayoshi Son's tech and telecoms conglomerate SoftBank Group raised a national record of $23.5 billion by listing its mobile unit in 2018.

These days, four other subway lines are run separately by the Tokyo government, alongside East Japan Railway's overground routes such as the circular Yamanote Line, and other private services.

Analysts said the firm's strong profits and stable business and high dividend yield attracted investors. In the year to March 2025, it expects to pay 40 yen per share.

Tokyo Metro posted a net profit of 46 billion yen for the fiscal year that ended in March 2024, up 67 percent from a year earlier. This year it is aiming to increase this to 52 billion yen.