You might have expected a stronger showing, but NTT DC REIT made a rather soft entry into the Singapore stock market on July 14, despite backing from one of the world’s biggest telecoms firms and raising US$773 million in the largest initial public offering (IPO) Singapore has seen since 2021.
The data centre real estate investment trust (REIT), supported by Japan’s Nippon Telegraph and Telephone Corp (NTT), saw its shares edge up slightly to US$1.03 within the first 30 minutes of trading. That’s only a modest increase from the IPO price of US$1.00 per unit. Meanwhile, the broader Singapore Straits Times Index (STI) rose by 0.4% during the same period.
High hopes, modest start
NTT DC REIT’s portfolio includes six data centres spread across Austria, Singapore, and the United States, collectively valued at US$1.6 billion. The trust is backed by NTT Ltd, which holds a 25% stake. GIC, Singapore’s sovereign wealth fund, is another key supporter, having a 9.8% stake.
Although the debut may not have been flashy, the listing suggests a broader global trend. Investors are increasingly drawn to data centre assets in the Asia-Pacific region, as artificial intelligence (AI) continues to drive data demand and cloud infrastructure growth.
This IPO is the largest in Singapore since Digital Core REIT raised US$977 million in 2021. It’s also the biggest in Southeast Asia since Thai Life Insurance’s US$942.9 million listing in 2022, according to LSEG data.
The lukewarm reception could be due to broader market caution or investors waiting to see how the REIT performs before making bigger moves. But data centres remain a hot topic in both investment and technology sectors.
A wave of new listings is coming
NTT DC REIT’s listing is part of a growing trend on the Singapore Exchange (SGX), which has seen a revival in IPO activity. Much of this momentum comes from a February push by the Singapore government to enhance its equities market, including the introduction of a 20% tax rebate for companies making a primary listing.
Art Karoonyavanich, global head of equity capital markets at DBS, noted that there’s now a “broad base” of potential REIT listings in the pipeline. These include offerings across various asset classes—data centres, industrial, logistics, hospitality, commercial, and retail.
“This is the first time we’ve seen such a rich IPO pipeline expected within just a 12-month window,” Karoonyavanich said. “They could raise anything from S$600 million (US$468 million) to around a billion.”
Beyond REITs, activity is heating up elsewhere as well. China Medical System (CMS), already listed in Hong Kong, plans to list on the SGX on July 15. CMS believes this move will help attract investment from Asia-Pacific-focused funds and local Southeast Asian capital.
Meanwhile, Foundation Healthcare and Centurion are preparing for their initial public offerings (IPOs). Centurion, in particular, is working on launching a REIT focused on employee dormitories—a niche segment with strong demand in Singapore and the region.
A strong year for Singapore stocks
All of this IPO activity is happening at a time when Singapore’s stock market is performing exceptionally well. The STI has risen more than 8% this year and recently reached all-time highs across nine consecutive trading sessions, according to LSEG data.
For you, as an investor or observer, the message is clear: Singapore’s IPO landscape is waking up. While NTT DC REIT’s start might have been mild, it reflects a sector with solid fundamentals and growing long-term potential.
If the pipeline lives up to its promise, you can expect to see many more listings in the coming months, offering opportunities in a wide range of sectors, including data infrastructure, healthcare, and housing.
