The logo of the Tokyo Metro was photographed at Kasumigaseki Station in Tokyo, Japan on August 15, 2024.
Miho Uranaka | Reuters
Tokyo Metro is expected to raise 348.6 billion yen ($2.3 billion) after pricing its initial public offering at the upper limit, two people familiar with the matter said, Japan’s largest IPO in six years.
The company priced the shares at 1,200 yen per share, compared with a previous pricing range of 1,100 to 1,200 yen, sources said.
Tokyo Metro declined to comment.
The company, one of Tokyo’s two major subway operators, is scheduled to announce pricing later Tuesday and list on the Tokyo Stock Exchange on Oct. 23.
Based on a forecast dividend of 40 yen per share for the fiscal year ending March 2025, Tokyo Metro’s dividend yield is 3.3%.
“This is very outstanding compared to other private railways and JR Railways,” said Kazumi Tanaka, an analyst at DZH Financial Research.
“In addition to the stabilization of the rail business, we can also expect growth from increased inbound traffic,” he added.
The central government, which owns 53.4% of Tokyo Metro, and the Tokyo government, which holds the remaining 46.6%, will sell half of their shares in the IPO.
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