Tokyo Metro shares gain over 40% on debut after Japan's largest IPO in six years

Shares of Japanese subway relation Tokyo Metro roseate implicit 40% Wednesday aft a stellar IPO.

The institution had raised 348.6 cardinal yen ($2.3 billion) successful the largest archetypal nationalist offering successful Japan successful six years. Shares were priced at the top-end of the IPO terms set of 1,100 yen to 1,200 yen.

Tokyo Metro is 1 of Japan's starring subway companies and the largest relation successful Tokyo. The institution is presently owned jointly by Japan's nationalist authorities and the Tokyo metropolitan government, with a 53.4% and 46.6% involvement respectively.

Reuters reported that the wide IPO was oversubscribed much than 15 times, portion the information disposable to retail investors — astir four-fifths of the wide size — was oversubscribed astir 10 times.

The shares disposable to home and overseas organization investors, accounting for 1.5% and 20% respectively, were oversubscribed much than 20 and 30 times, Reuters reported.

Jesper Koll, adept manager astatine fiscal services steadfast astatine Japan-based Monex Group successful Tokyo, said the IPO was warmly received owed to the institution being a "cash cow." Tokyo Metro is simply a "high dividend, unchangeable currency travel generator," and the institution has a precise debased operational risk, helium added.

"So whether you're Mr. Watanabe [retail investor] ... whether you're the planetary capitalist oregon an organization investor, this is simply a large stock to own."

Mio Kato, laminitis of LightStream Research, told CNBC's "Street Signs Asia" past week that the banal has been priced "relatively cheaply," describing it arsenic a "a large banner IPO for the year."

Japan stocks roseate sharply successful 2023 and the state was Asia's best-performing marketplace past year, with gains of implicit 28%. In 2024, the country's banal benchmark Nikkei 225 has recorded caller all-time highs, with year-to-date gains of 16.41%.