“We thought the IPO price was too low and its fair value would be around ¥1,600,” said Taku Ito, chief equity fund manager at Nissay Asset Management. “This is a typical dividend stock. It is also a defensive stock. I doubt there’s much upside to its stock prices but it is a stock you can hold for a long time at current levels.”
Tokyo Metro Co.’s stock price surged 45% on Wednesday in its trading debut after the initial public offering drew strong demand from investors looking for a steady stream of dividends from the firm.
The shares closed the trading session at ¥1,739 (S$15.06) and rose as high as ¥1,768 after the operator of one of the world’s biggest subway systems sold them at ¥1,200 (US$8) a piece, raising ¥348.6 billion in Japan’s largest IPO since mobile carrier SoftBank Corp. listed in 2018. The deal was oversubscribed more than 15 times, according to several of the lead underwriters.
