NTT DC REIT, the data centre real estate investment trust backed by Japan’s Nippon Telegraph and Telephone Corporation (NTT), made a subdued debut on the Singapore Exchange (SGX) on Monday, despite raising US$773 million in the city-state’s largest initial public offering (IPO) since 2021.
The units opened modestly at US$1.03 within the first 30 minutes of trading, edging just above the offer price of US$1.00. The STI benchmark index was up 0.4 per cent during the same period.
NTT DC REIT holds a portfolio of six data centres located in Austria, Singapore and the United States, with a total valuation of approximately US$1.6 billion. The trust’s cornerstone investors include Singapore’s sovereign wealth fund GIC, which holds a 9.8 per cent stake, making it the second-largest stakeholder after NTT Ltd, which retains 25 per cent.
The listing highlights increasing global investor appetite for data centre assets across Asia-Pacific, underpinned by accelerating demand for artificial intelligence infrastructure and services.
This IPO marks Singapore’s most substantial listing since Digital Core REIT’s US$977 million debut in 2021, according to data from LSEG. It also stands as Southeast Asia’s largest IPO since Thai Life Insurance raised US$942.9 million in 2022.
Expanding IPO Pipeline in Singapore
The SGX has seen renewed listing activity following the rollout of market-strengthening initiatives in February, including a 20 per cent corporate tax rebate for companies pursuing primary listings.
“There is a broad base of potential REIT IPOs on the horizon, including data centre, industrial, logistics, hospitality, commercial and retail assets,” said Art Karoonyavanich, Global Head of Equity Capital Markets at DBS. “This marks the first time we have such a pipeline within a 12-month horizon, and these IPOs could raise anywhere between S$600 million (US$468.27 million) and S$1 billion.”
Beyond REITs, China Medical System (CMS), listed in Hong Kong, is set to commence trading on the SGX on Tuesday via a secondary listing.
“We believe that upon completion of the proposed secondary listing on the SGX, CMS will be able to attract funds focusing on Asia-Pacific investments and local capital in Southeast Asia, thereby optimising the shareholder structure,” the company said in a statement to Reuters.
Other listing candidates in Singapore include Foundation Healthcare and Centurion, which plans to launch a REIT focused on employee dormitory assets.
The uptick in listing activity comes amid a buoyant stock market. Singapore’s benchmark index has climbed more than 8 per cent since the beginning of the year and reached record highs in the past nine trading sessions, according to LSEG data.
-Reuters
