Tokyo Metro considers a shareholder benefits program

Tokyo Metro may create a shareholder benefits program to encourage individual investors to hold its stock for the long term, according to people familiar with the matter.
Such a move would likely help to stabilize the share price of Tokyo Metro after the initial public offering (IPO) of its shares, said the people, who asked not to be identified as the information isn’t public.
The subway operator is expected to announce on Friday details of its IPO, which may value the company around ¥700 billion ($5 billion), people familiar with the matter have said previously. One of those people said Oct. 23 is the most likely listing date.
Tokyo Metro will consider examples of similar programs at other companies in its industry before deciding on any details of shareholder benefits, said one of the people. Another of the people said that ticket books are one of the options being considered.
A spokesperson for Tokyo Metro declined to comment on whether the company is considering introducing shareholder benefits.
While other listed railway companies offer discounts on train tickets, shareholder benefits programs in Japan have been on a downward trend amid criticism from foreign investors and others who have found it difficult to actually receive any benefit.
Still, Hiroaki Tomori, executive fund manager at Mitsubishi UFJ Asset Management, said Tokyo Metro shares will likely be popular with individual investors and that he’s paying attention to any special offers programs. The presence of shareholder perks could support the stock, Tomori said.