Tokyo Metro may set up a shareholder benefits program to encourage private investors to hold shares for the long term, according to insiders.
Such a move would likely help stabilize Tokyo Metro’s share price after the stock’s initial public offering, the sources said, speaking on condition of anonymity because the information is not public.
The subway operator is expected to announce details of its IPO, which could value the company at around ¥700 billion ($5 billion), on Friday, sources familiar with the matter said earlier. One of those sources said Oct. 23 was the most likely listing date.
Tokyo Metro will consider examples of similar programs at other companies in the sector before deciding on details of shareholder benefits, one of the people said. Another person said ticket booking is one of the options being considered.
A Tokyo Metro spokesman declined to comment on whether the company was considering introducing shareholder benefits.
While other listed railway companies offer discounts on train tickets, Japan has seen a decline in shareholder benefit programs, amid criticism from foreign investors and others who find it difficult to receive real benefits.
Still, Hiroaki Tomori, executive fund manager at Mitsubishi UFJ Asset Management, said Tokyo Metro shares are likely to be popular with retail investors and that he is paying attention to special offers. The presence of shareholder benefits could help support the stock, Tomori said.
