Tokyo Metro takes wild ride on inefficient market
23/10/2024 09:51
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Hudson Lockett
HONG KONG, Oct 23 (Reuters Breakingviews) - Shares of
Japan's $7 bln subway operator surged 45% on debut. An official
campaign to attract more retail investors is working, perhaps
too well. A paucity of IPOs means bankers might be rusty on
price discovery too. Public market hopefuls will need to tread
carefully.
Full view will be published shortly.
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CONTEXT NEWS
Shares in Tokyo Metro closed 45% higher on their first day
of trading after the company raised 348.6 billion yen ($2.33
billion) in Japan’s largest initial public offering in six
years.
The debut followed a marketing blitz targeting retail
traders and marked the first major deal since the government
expanded a tax-free investment account program in January as
part of a drive to encourage households to shift more of their
savings into stocks.
(Editing by Robyn Mak and Aditya Srivastav)
((For previous columns by the author, Reuters customers can
click on LOCKETT/
hudson.lockett@thomsonreuters.com))