On October 17, Kyushu Railway successfully completed a $4.0bn privatization IPO, pricing at the top of the range at ¥2,600 per share. The deal is Japan’s largest IPO this year and the largest transport sector ECM transaction worldwide in 2016.

As a trusted financial platform partner, Dealogic helped the global coordinators and the bookrunners seamlessly execute the transaction through the DealManager network.

Transaction Details

Issuer: Kyushu Railway Co

Nationality: Japan

Industry: Transportation

Deal value ($m): 3,994

Deal type: IPO, privatization

Selling shareholder: Japan Railway Construction Transport & Technology Agency – JRTT

Bookrunners: Nomura, Morgan Stanley, JPMorgan, Sumitomo Mitsui Financial Group, and Goldman Sachs

Key Points

• Japan’s largest IPO since Japan Post’s $11.9bn combined offering in October 2015
• World’s largest transport sector IPO since Japan Post
• World’s largest privatization IPO since ABN AMRO Group’s $4.1bn listing in November 2015
• Second largest IPO in Asia Pacific this year, following Postal Savings Bank of China’s $7.4bn listing in September; and world’s third largest IPO this year
• Japan IPO volume of $9.7bn so far this year is more than 3 times the amount raised during the same period last year ($2.7bn), with deal activity almost on par at 69 deals. Japanese IPO issuance ranks third behind China and the US respectively, and is at the highest YTD level in 2 years ($9.9bn in 2014)
• Global $1bn+ IPO deal flow stands at 13 offerings this year, down from 21 last year, and marks the slowest year for such deals in 4 years (12 IPOs in 2012 YTD)

Top 3 Japan IPOs in 2016 YTD

1. Kyushu Railway, $4.0bn | Transport | Oct 2016
2. LINE Corp, $1.3bn | Technology | Jul 2016
3. LaSalle Logiport REIT, $911m | Real Estate | Feb 2016

Top 3 global privatization IPOs in 2016 YTD

1. Kyushu Railway, $4.0bn | Japan | Oct 2016
2. Dong Energy, $3.0bn | Denmark | Jun 2016
3. ASR Nederland, $1.2bn | Netherlands | Jun 2016

Top 3 global IPOs in 2016 YTD

1. Postal Savings Bank of China, $7.4bn | China | Sep 2016
2. innogy, $5.1bn | Germany | Oct 2016
3. Kyushu Railway, $4.0bn | Japan | Oct 2016

Top 3 global transport ECM transactions in 2016 YTD

1. Kyushu Railway, $4.0bn IPO | Japan | Oct 2016
2. Hainan Airlines, $2.5bn Follow-on | China | Sep 2016
3. Canadian Pacific Railway, $1.4bn Follow-on | Canada | Aug 2016