Tokyo Metro raises $2.3Bn in Japan’s biggest IPO in 6 years (Reuters)

TOKYO, Oct 15 (Reuters) – Tokyo Metro (9023.T) raised 348.6 billion yen ($2.3 billion) in Japan’s largest initial public offering in six years after pricing its IPO at the top of its range, a regulatory filing from the company showed on Tuesday. The IPO was more than 15 times oversubscribed, said two sources familiar with the matter, as many investors were drawn by a household name and the firm’s attractive dividend yield.

The company priced the shares at 1,200 yen apiece, compared with a range of 1,100 to 1,200 yen. It is expected to list on the Tokyo Stock Exchange on Oct. 23. The portion available to retail investors, accounting for almost four-fifths of the total, was around 10 times oversubscribed, the sources said.

The shares available to domestic and foreign institutional investors, accounting for 1.5% and 20% respectively, were more than 20 and 30 times oversubscribed, the sources said… 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.

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