On Wednesday, the Tokyo Metro debuted on the stock market following its IPO, opening at 1,630 yen— a remarkable 36% above the IPO price of 1,200 yen. This strong start adds significant momentum to the Japanese stock market.
The subway system, which serves an impressive daily ridership of 6.5 million, has caught the attention of individual investors due to its high dividend yield and stability.
Underwriters revealed that demand for the company’s stock from foreign investors was particularly robust, with subscriptions exceeding available shares by more than 35 times.
Looking ahead, Tokyo Metro anticipates a dividend of 40 yen per share for the fiscal year ending in March 2025, resulting in a cash yield of 3.4%. This rate is notably higher than the average yield of less than 2% for publicly listed transportation companies in Japan.
