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STORY: Japan is seeking a $4.7 billion valuation for Tokyo Metro, in what would be the country’s biggest listing in six years.
That’s according to three sources who spoke to Reuters that say it could happen by the end of October.
Tokyo Metro is the larger of the city’s two subway operators and a major piece of its vast rail network.
Its history stretches back over a century: it opened Japan’s first subway line in 1927 between Ueno and Asakusa, now a popular tourist spot.
The national government and the city jointly own 100% of the operator.
A source said they plan to arrange a meeting of brokerages within a week for a briefing on the IPO.
And – the governments expect to receive approval for the listing as soon as mid-September.
With half the company to be sold, the valuation could raise nearly $2.4 billion, becoming the largest IPO in Japan since SoftBank listed its wireless unit in 2018.
The central government plans to use the funds raised from selling its half to repay reconstruction bonds issued following the 2011 earthquake and tsunami.
In response to a request for comment, Tokyo’s government said the timing of the sale is under discussion and is not decided,
while Tokyo Metro said it would not comment on progress of the listing.