The central and Tokyo governments are seeking a ¥700 billion ($4.7 billion) valuation for Tokyo Metro as they prepare to list the subway operator as early as the end of October, three sources said, in what would be the nation’s biggest initial public offering (IPO) in roughly six years. #TokyoMetroIPOValuation
The two governments, which own 100% of Tokyo Metro, plan to arrange a meeting of brokerages within a week for a briefing on the IPO and expect to receive approval for the listing from the Tokyo Stock Exchange as soon as mid-September, the sources said.
With half the company to be sold, the IPO could raise ¥350 billion at that valuation, which would exceed the size of Kokusai Electric’s IPO last year and become the largest since SoftBank Group listed its wireless unit in 2018.
The Tokyo Metropolitan Government said the timing of the sale is being discussed with the national government and is not decided.
The Finance Ministry did not respond to requests for comment.
Tokyo Metro said it would not comment on progress on the listing.
Japan Exchange Group, which operates the Tokyo Stock Exchange, said it cannot comment on specific companies.
The IPO follows the listing of other railway operators, including Kyushu Railway Co. (JR Kyushu) in 2016.
Tokyo Metro runs 195 kilometers of lines carrying 6.5 million passengers daily.
Tokyo Metro’s history dates back to 1920 with the establishment of the Tokyo Underground Railway Company.
Seven years later, it opened Japan’s first subway line, between the Asakusa and Ueno districts of Tokyo. #TokyoMetroIPOValuation
Moreover, the Tokyo Metro IPO valuation indicates robust investor interest and confidence. As the IPO date approaches, industry experts are closely watching market reactions. The anticipated valuation highlights the potential growth and profitability of Tokyo Metro.
read more
