Tokyo Metro, one of Japan‘s subway operators, has announced a price range for its initial public offering (IPO) in a regulatory filing on Monday. The price range is set at 1,100 to 1,200 yen per share, slightly higher than the initial estimate of 1,100 yen. If the IPO is priced at the top end of the range, Tokyo Metro could raise 349 billion yen ($2.35 billion), making it the largest IPO in Japan in six years.
The final IPO price will be determined on October 15th and Tokyo Metro is expected to list on the Tokyo Stock Exchange on October 23rd. The subway operator is jointly owned by the Tokyo and national governments.
In other news related to Japanese IPOs, Rigaku plans to list this month. Rigaku is a manufacturer of X-ray testing tools and is backed by buyout firm Carlyle Group. However, chipmaker Kioxia has decided to cancel its plan for an IPO in October.
Earlier this year, Japan’s stock market experienced a significant downturn due to factors such as an unexpected interest rate hike and concerns about a potential U.S. recession. However, it has since recovered with the benchmark index up approximately 18% so far this year.
Tokyo Metro has a long history that dates back to its establishment as the Tokyo Underground Railway Company in 1920. Seven years later, it opened Japan’s first subway line between Asakusa and Ueno districts in Tokyo.