NTT DC REIT raises $773 million, marking Singapore's largest IPO in eight years

In Singapore, NTT DC REIT launched its initial public offering (IPO) in mid-2025, raising $773 million. This event is significant as it marks the largest IPO in the country since Singtel's broadband unit NetLink NBN Trust went public in 2017, which raised $1.7 billion. The listing attracted considerable attention, particularly due to its backing from several cornerstone investors, including Singapore's sovereign wealth fund, GIC, which is now the second-largest shareholder of the trust following the sponsor, NTT Group. Other notable cornerstone investors consist of hedge funds such as Ghisallo Capital Management and Pinpoint Asset Management. With this IPO, NTT DC REIT aimed to utilize the raised funds to acquire a full stake in its portfolio comprising six data centers located across various strategic sites, including California, Virginia, Vienna, and Singapore. The total portfolio has a capacity reaching 90.7 megawatts and is valued at approximately $1.6 billion. As of March 2024, revenues for NTT DC REIT saw a decline of 9%, amounting to $178.7 million, primarily due to a vacancy period following the change of an anchor tenant at one of the California facilities. The data centers operated by NTT DC REIT are predominantly leased to global cloud service providers and major technology firms, contributing to 51% of the total monthly base rent of over $12 million. Furthermore, the portfolio displayed an impressive overall occupancy rate of 94.3%, coupled with a weighted average lease expiry of about 4.8 years. This successful listing comes at a crucial time for Singapore, which has struggled with a subdued IPO market in recent years. To date in 2025, Singapore has recorded only three listings, aggregating around $840 million, with NTT DC REIT’s offering constituting more than 90% of that figure. In stark contrast, Hong Kong has surged back as a leading listing venue, with 42 firms raising a staggering $13.6 billion in the first half of the same year. This rise in IPO activity in Hong Kong has led to companies, including the Thai coconut water producer, IFBH, shifting their listing plans from Singapore. The robust performance of NTT DC REIT's IPO signals a potential resurgence and revitalization of Singapore's listing market, showcasing both local and foreign investors' renewed interest in public offerings in the region.