Tokyo Metro is expected to raise 348.6 billion yen ($2.3 billion) after pricing its initial public offering at the top end of its range, according to two sources familiar with the matter, in the largest IPO in Japan for six years.
One of Tokyo's two major subway operators, the company is set to announce the pricing later on Tuesday and list on the Tokyo Stock Exchange on Oct. 23.
The price gives Tokyo Metro a dividend yield of 3.3% based on its forecast dividend of 40 yen per share for the financial year ending March 2025.
"That stands out compared to other private and JR railways," said Kazumi Tanaka, an analyst at DZH Financial Research.
The central government, which owns 53.4% of Tokyo Metro, and the Tokyo government, which holds the remaining 46.6%, are selling half of their shares in the IPO.
Persons:
Kazumi Tanaka
Organizations:
Tokyo Metro, Tokyo Stock Exchange, DZH Financial
Locations:
Tokyo, Japan