Three sources said that the Japanese central government and the Tokyo Metropolitan Government are seeking an IPO valuation of 700 billion yen (approximately 34.1 billion yuan) for the Tokyo Metro, and are preparing to go public as early as the end of October. This will be the largest IPO in Japan in the past six years.
Japan welcomes its largest IPO in six years
The Tokyo Metro Corporation was originally founded in 1920 and is a "well-established state-owned enterprise" in Japan. The central government of Japan and the Tokyo Metropolitan Government jointly own 100% of the shares in the Tokyo Metro. Among them, the Japanese central government holds 53.4% of the shares, while the Tokyo Metropolitan Government holds 46.6%.
At present, these two governments plan to arrange a brokerage meeting within a week to give a briefing on this IPO. It is reported that the IPO project is expected to receive listing approval from the Tokyo Stock Exchange as early as mid September.
With half of Tokyo Metro's shares sold, the company may raise 350 billion yen through an IPO, surpassing the IPO size of Japanese semiconductor manufacturer Kokusai Electric last year and becoming the largest IPO in Japan since 2018.
The Tokyo government stated that the local government is in discussions with the Japanese central government regarding a specific listing date, which has not yet been determined. The Tokyo Metro Corporation is unwilling to comment on the progress of the listing.
Prior to this IPO, several railway operators in Japan had already gone public, including Kyushu Railway (JR Kyushu) which went public in 2016.
A 100 year old Japanese state-owned enterprise
The history of Tokyo Metro Corporation can be traced back to 1920. In 1920, Tokyo Metro Corporation was established, and seven years later, it opened Japan's first subway line, connecting Asakusa and Ueno districts in Tokyo, making Tokyo the first city in Asia to open a subway.
At present, the total length of Tokyo Metro lines is 195 kilometers, with a daily passenger flow of 6.5 million people.
In addition to subway line operations, Tokyo Metro's business also includes real estate and retail. The company reported that as Japan's economic activity rebounded from the COVID-19, its net profit increased by two-thirds to 46 billion yen (about 2.243 billion yuan) in the fiscal year ending March 2024.
After the IPO is completed, the Japanese central government plans to use the funds raised to repay the reconstruction bonds issued after the 2011 earthquake and tsunami.