Kyushu Railway Co. shares have climbed in the gray market before the company's debut next week, people familiar with the matter said.

The rail operator changed hands at ¥2,800 and ¥2,850 a share on Tuesday, a gain of as much as 9.6 percent compared with its initial public offering price of ¥2,600 set Monday, the traders said, asking not to be identified because of company policy.

The Fukuoka-based firm, known as JR Kyushu, starts trading on the Tokyo Stock Exchange next Tuesday after an IPO set to raise ¥416 billion.