The Japanese central and Tokyo metropolitan governments are aiming for a stock listing of Tokyo Metro Co., an operator of the capital's subway, as early as fiscal 2024 starting April, sources familiar with the matter said Friday.
The central government owns 53.4 percent of the company, with the metropolitan government holding the remaining 46.6 percent. The two governments are considering selling about half of their combined shares, the sources said.
The plan comes as the Japanese stock market is booming, with the Nikkei index hitting 34-year highs earlier this month, fueled by heightened expectations that the country may finally completely emerge from its long-running deflationary period.
The share sale would be carried out in phases, with the central and Tokyo governments deciding on the exact timing of the listing based on market trends, the sources said.
The proceeds from the sale for the central government will be appropriated for the reconstruction of Japan's northeast, devastated by a massive earthquake and tsunami in 2011.
The Tokyo metropolitan government earmarked about 3.6 billion yen ($24 million) for expenses related to the share sale in its budget proposal for fiscal 2024, which was released Friday.
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