TOKYO -Tokyo Metro's shares shot up 44% in their market debut on Wednesday after Japan's largest initial public offering in six years bagged it $2.3 billion with promises of generous dividends.
"It's a well-known, well respected and stable business which offered a decently high dividend yield at IPO and excitement around that is reflected in the first day of trading," said Travis Lundy, a special situations analyst who publishes on Smartkarma. There was a large increase in the opening of brokerage accounts targeting the IPO, said senior market analyst Tomoichiro Kubota at Matsui Securities.
"The listing of a large company familiar to individual investors has a large merit in broadening the investor base," Toshio Morita, CEO of the Japan Securities Dealers Association and former president of Nomura Securities, said before the debut.Rigaku Holdings, a maker of X-ray testing tools, raised $863 million in its IPO after pricing shares at the top of the range and will debut on Friday.