TOKYOOctober 24 (News On Japan) – Tokyo Metro made a groundbreaking debut on the Tokyo Stock Exchange on October 23, releasing half of its shares, previously held by the national government and the Tokyo government, to the public , which is the largest IPO since SoftBank created in 2018.
The IPO quickly caught the market’s attention and within the first hour of trading, the stock opened at 1,630 yen โ a 35% increase from the offering price. The company’s higher dividend yields compared to other railroads, along with exclusive shareholder benefits such as free admission to the Subway Museum and discounts at group-affiliated restaurants, helped drive interest among individual investors.
Discussions about Tokyo Metro’s stock exchange listing started decades ago and dated back to its predecessor, Teito Rapid Transit Authority, also known as Eidan Subway. In 1986, the Japanese government signaled for the first time a move toward full privatization as part of administrative reforms. However, when Eidan Subway switched to Tokyo Metro in 2004, the Tokyo Metropolitan Government opposed the company’s push for an early listing. Then-Tokyo Governor Shintaro Ishihara made clear his intention to keep Tokyo’s shares separate from those of the national government as the capital sought to merge its deficit-ridden Toei Subway with Tokyo Metro. This resistance has held back listing progress for years.
A breakthrough came in 2021 during discussions by a national council, which outlined plans for the stock exchange listing. Along with the extension of the Yurakucho Line and other infrastructure projects, national and Tokyo governments prepared for the eventual IPO. The listing finally took place on October 23, when Tokyo Metro’s shares closed at 1,739 yen, giving the company a market capitalization of more than 1 trillion yen.
Looking ahead, Tokyo Metro has several expansion projects underway, including the extension of the Yurakucho Line from Toyosu to Sumiyoshi and the Namboku Line from Shirokane-Takanawa to Shinagawa. These projects aim to improve access and reduce congestion, especially as inbound tourism continues to rise. The company plans to continue to own half of the remaining shares, together with the national government and the Tokyo government, to support these expansions, with a target opening date in the mid-2030s.
In addition to its core rail business, Tokyo Metro plans to use the momentum of its stock market listing to expand into non-railway sectors. President Akira Yamamura has expressed his intention to strengthen the company’s real estate and retail businesses, signaling a broader growth strategy for the coming years.
Source: ANN
