Japan, Tokyo governments target $4.7 bln valuation for Tokyo Metro in IPO
Japan’s national and Tokyo governments are gearing up for a major move as they aim to list Tokyo Metro in what could be the nation’s largest IPO in six years. According to an exclusive report by Reuters, the two governments are eyeing a valuation of 700 billion yen ($4.7 billion) for Tokyo Metro, with plans to list the subway operator by the end of October.
The governments, who currently hold 100% ownership of Tokyo Metro, are set to meet with brokerages in the coming week to provide details on the IPO. Approval from the Tokyo Stock Exchange is expected to be secured by mid-September, paving the way for the listing to proceed.
With half of the company up for grabs, the IPO could potentially raise 350 billion yen at the targeted valuation. This figure would surpass the size of Kokusai Electric’s IPO last year and mark the largest offering since SoftBank Group listed its wireless unit in 2018.
The market impact of this listing is expected to be significant, with investors closely watching the developments. The IPO of Tokyo Metro could inject a substantial amount of capital into the market and attract interest from both domestic and international investors.
In terms of sectors, the Business & Finance and Economy sectors are likely to be the most impacted by this listing. The move also holds significance for the Asia region, particularly Japan, where Tokyo Metro plays a crucial role in the transportation infrastructure.
Overall, the impending IPO of Tokyo Metro is poised to make waves in the market and could set a new benchmark for IPOs in Japan. Investors and stakeholders will be keeping a close eye on the developments leading up to the listing and the subsequent performance of Tokyo Metro in the public market.
