TOKYO Oct 18 Shares of Kyushu Railway Co
were indicated at 2,800-3,000 yen in the unofficial or
"grey" market on Tuesday, roughly 8 to 15 percent above the
initial public offering (IPO) price, market sources told Thomson
The railway operator in southern Japan, better known as JR
Kyushu, set its IPO price at 2,600 yen per share on Monday.
One source said the shares appeared to be traded at 2,800
The IPO is expected to be the largest in Japan this year,
with the government, which currently owns 100 percent of the
company, raising 416 billion yen ($4.02 billion).
The government sold its shares in other railway operators in
the past, such as the East Japan Railway Co and West
Japan Railway Co as it broke up and privatized the
former state-owned railway network.
JR Kyushu is trying to take advantage of the foreign tourist
boom on Kyushu island, which boasts hot springs and scenic
landscapes and attracted a record 2.8 million foreign visitors
last year, an increase of 69 percent from a year earlier.
The company will be listed on the Tokyo Stock Exchange on
Tuesday next week.
(Reporting by Noriko Futamura; Writing by Hideyuki Sano;
Editing by Mark Potter)