Tokyo Metro IPO Surges 47.3% In Japan's Biggest Debut In 6 Years

Tokyo Metro Co. had a remarkable debut on the Tokyo stock market, with its shares surging 47.3% above the offering price of 1,200 yen ($7.9), marking Japan's largest initial public offering (IPO) in six years, Kyodo News reported.

The IPO placed Tokyo Metro's market capitalization at approximately 1.01 trillion yen. I Photo: ykanazawa1999

The IPO placed Tokyo Metro's market capitalization at approximately 1.01 trillion yen, making it the seventh-largest railway operator in the country by market value as of Wednesday.

The share price of Asia's oldest subway operator closed at 1,739 yen after opening at 1,630 yen on its first day of trading on the Tokyo Stock Exchange's Prime Market, Mainichi Japan also reported.

Tokyo Metro, the country’s second-largest railway company by passenger volume, saw substantial buy orders from individual investors seeking stability and dividends. It took about an hour to reach the opening price after the market opened at 9 a.m.

"We believe this listing provides a foundation for further management reforms and allows us to enter a new stage," Tokyo Metro President Akiyoshi Yamamura said at a press conference after Wednesday's trading.