Tokyo Metro's shares experienced a significant surge of over 40% on their debut after Japan's largest IPO in six years, which raised 348.6 billion yen ($2.3 billion).

The shares were priced at the upper end of the IPO range, between 1,100 yen and 1,200 yen. The offering was oversubscribed more than 15 times overall, with retail investor portions oversubscribed around 10 times and institutional investors experiencing even higher demand.

Experts emphasize Tokyo Metro's attractiveness as a "cash cow" due to its high dividend yield and stable cash flow, which contribute to its low operational risk. The company is jointly owned by Japan's national government and the Tokyo metropolitan government, with ownership stakes of 53.4% and 46.6%, respectively.

The positive response to the IPO reflects the broader upward trend in Japan's stock market, with the Nikkei 225 index reaching new all-time highs in 2024.