Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Tokyo Metro IPO - Will Price at the Top, but Isn’t Particularly Cheap

Tokyo Metro (9023 JP) IPO: Valuation Insights

Tokyo Metro IPO: Steady Tracks with Potential for OP Growth Through Fixed Cost Savings

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>Tokyo Metro set the IPO price range at 1,100 to 1,200 Yen per share. At the top end of the range, Tokyo Metro would raise 349 billion yen ($2.35 billion).</li>
<li><em><strong>Our base case valuation of Tokyo Metro is implied target price of 1,178 yen per share. This is within the top end of the IPO price range (1,200 yen). </strong></em></li>
<li>Given the lack of upside relative to the IPO price range, we have a Negative view of this IPO. </li>
</ul>


Tokyo Metro set the IPO price range at 1,100 to 1,200 Yen per share. At the top end of the range, Tokyo Metro would raise 349 billion yen ($2.35 billion).
Our base case valuation of Tokyo Metro is implied target price of 1,178 yen per share. This is within the top end of the IPO price range (1,200 yen). 
Given the lack of upside relative to the IPO price range, we have a Negative view of this IPO. 


Tokyo Metro

Tokyo Metro IPO Valuation Analysis