"There's huge appetite for these assets," Peter Boardman, managing director at NWQ Investment Management, told CNBC's "The Rundown" on Tuesday. "You have to remember these are utility companies and, in Japan, the normal power utility companies have sustainable dividends. So transportation, telecoms, these are highly regarded assets by the Japanese public."
But he added that while most transportation companies wouldn't offer much in the way of growth, especially in demographically challenged Japan, Kyushu Railway was also a real-estate play. He noted that around 30 percent of its revenue and 50 percent of its profit came from real estate.
"Kyushu is considered the gateway to Japan. Seventy-five percent of all cruise ships that come to Japan actually stop in Kyushu. There's been a huge amount of inbound tourism coming to Kyushu from Korea and Taiwan and China, so in terms of the growth opportunities, the real estate side is actually quite attractive," he said. "Over the next three years you're going to see a lot of free cash flow being generated on the hotels and condominiums and apartment complexes that have already been invested."
Around a quarter of the IPO shares were allocated for foreign investors.
But while Kyushu Railway's dividend may be attractive to Japan's yields-starved investors, it wasn't clear how much it would interest overseas investors. One analyst noted, however, that the offering may just be too big for foreign investors to ignore.
"From a foreign investor's perspective, generally speaking, investment into Japan is not really seen as a huge yield-enhancer," Naomi Fink, CEO at Europacifica Consulting, told CNBC's "Squawk Box" on Tuesday.
But she noted that Japan's stock market was one of the world's largest.
"I think Japan remains an extremely important diversification play," she said. "From a foreign investors standpoint, you can't overlook the diversification benefits of investment into Japan and given this offer is a massive one, I would anticipate there is at least some interest from overseas investors."