(Bloomberg) -- Tokyo Metro Co. is seeking growth through mergers and acquisitions, as well as investments, according to the newly listed company’s president.
“Being listed on the stock exchange will make us more trusted by various partners, and we will be able to propose more possibilities,” Akiyoshi Yamamura said in an interview on Nov. 20. While the company is focused on the railway business, fields outside that area such as real estate and distribution “must be strengthened,” he said.
The company attracted the attention of global investors in Japan’s largest IPO last month since mobile carrier SoftBank Corp. listed in 2018. A gain of around 40% in the share price since the Oct. 23 listing suggests Tokyo Metro is in a period of growth after the recovery from the coronavirus pandemic, Yamamura said.
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The company plans to allocate around 30% of its ¥100 billion ($646 million) of capital expenditure each year to growth opportunities, in particular to acquisitions in real estate, Yamamura said.
Tokyo Metro announced earlier this month that its net income for the April-September period rose 27% from the same period last year to ¥30.7 billion. An increase in passenger transport revenue due to a revitalization of economic activity boosted profits.
The railway sector accounted for more than 80% of the company’s operating profit of ¥50.1 billion.
London’s transport operator said this week that the running of a flagship subway line in the UK capital will be taken over by a consortium that includes Tokyo Metro.
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Yamamura said that the London project would contribute to both revenue and profits, noting that it’s the first time Tokyo Metro has been responsible for operating a line other than its own.
--With assistance from Yui Hasebe and Katria Alampay.
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