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Metros Development, a Japan-based real estate consultancy, on Tuesday lowered the size of its proposed deal for its upcoming U.S. stock IPO. The Tokyo, Japan-based company is currently planning to raise $9 million by issuing 1 million shares at $8 to $9 per share. The company had previously applied to issue 1.9 million shares** in the same range. Based on the median of the offering price, Metros Development will raise 47% less revenue than previously expected. The outstanding shares of the IPO account for only 2.5 percent of the issued basic **0%。
According to public information, Metros Development is a real estate consulting company based in Japan that focuses on buying and reselling undeveloped land and properties. The company identifies and buys land and buildings that it believes are temporarily underdeveloped, and resells these properties to property developers. The real estate company does not develop, redevelop or participate in the construction or construction of any real estate, nor does it engage in real estate brokerage or related real estate services. As of May 31, 2023, Metros Development had an inventory value of more than 1$900 million, including more than 60 physical real estate inventories of more than $1 million.
Metros Development aims to identify new business development opportunities in the Japanese market through extensive cooperation with Japanese real estate developers. Metros Development was founded in 2013 and had total revenue of approximately 4$8.9 billion. The company plans to list on the NASDAQ market,** under the proposed name "MTRS". Boustead Securities and EF Hutton are the joint bookrunners for the transaction.
Metros Development's management plans to use a portion of the IPO proceeds to develop a crowdfunding platform that will grow the company's core business by developing crowdfunding as an alternative to investment and operating capital**.
According to a report released by Plaza Homes, the agency believes that the Japanese real estate market will remain strong in the coming years due to the continued growth of Tokyo's population, immigration to areas around Tokyo, and the strengthening of Japan's overall economy. Plaza Homes said businesses are slowly transitioning to a "hybrid" work environment, although existing office work norms are still stricter than in other developed countries. These trends have led to an increase in demand from residents for apartments close to major business districts.