NTT DC REIT set a dividend yield of 7.5% from July to March 2026, which is at the higher end of the marketed range.
Singapore’s largest IPO in eight years will decide if the stock exchange has finally become a desirable place for new listings.
Nippon Telegraph and Telephone Data (NTT) data centre (DC) REIT has started trading on Monday after gaining the city-state sovereign wealth fund as a rare cornerstone investor. Following the attempt to revive Singapore’s sleeping IPO market, the $773 million data centre IPO is seen as the spark that could bring it back to life.
As companies are raising $39 billion in new capital so far this year, the most since 2023, the stock market throughout Asia-Pacific has been attracting new listings. Up until now, Singapore has watched from the sidelines as India and Hong Kong, its primary financial centre rival, flourish.
Pol de Win, head of global sales and origination at Singapore Exchange Ltd, sees this IPO as a significant opportunity. He adds that it is crucial for high-quality assets to enter the market and pave the way for others. According to him, the exchange has been talking with NTT officials for years, along with banks and other parties.
As a cornerstone investor, the sovereign wealth fund, Government of Singapore Investment Corporation (GIC), bought almost $100 million worth of units, making it the second-largest shareholder in the Real Estate Investment Trust (REIT). It is the first time GIC has offered to help with the local IPO.
The scene in Singapore is quite barren. The four IPO raised last year were just $34 million, the second-lowest raised in 20 years.
GIC spokeswoman stated that the company wanted to maintain the long-term international purchasing power of the reserves under its management.
The sources claim that the offer caught the interest of wealthy and long-term investors. However, the investors were price-sensitive, so the company gave them a more liberal yield in the face of global uncertainty and elevated interest rates.
According to the prospectus, NTT DC REIT set a dividend yield of 7.5% from July to March 2026, which is at the higher end of the marketed range. It raised $773 million, which is less than its initial estimates.
The $1.6 billion portfolio of investment trust includes six data centres located in the US, Austria, and Singapore. NTT of Japan, a division of the NTT telecom company, which has data centres across the globe, backs it up.
Yutaka Torigoe, the CEO of the REIT management, stated that the performance of NTT DC REIT and a benchmark stock market index set a record for other companies in Singapore’s IPO pipeline.
The government has announced many incentives, such as tax breaks to attract listings and incentives for funds to buy local equities, while authorities are simplifying prospectus requirements.
Companies like France’s Praemia REIM and Hong Kong’s Link REIT are considering REIT IPO in Singapore. Some reports say that companies other than real estate, like UltraGreen.ai and Neon, also think about going public on the Singapore stock exchange (SGX).
Art Karoonyavanich, head of equity capital markets at DBS Group Holdings Ltd., the largest bank in the country, stated that the deal reaching the market is already a victory. That shows the capability for the market to introduce good-quality issuers. He added that there are more companies in the queue waiting to be part of the list.
NTT DC REIT will join the 40 REITs that trade on SGX. The REIT Association of Singapore estimates that REIT makes up around 10% of the overall market capitalisation.
The exchange aims to attract growth companies from Southeast Asia, meaning future IPO capital raises might range from $200 million to $300 million. According to Pol de Win, this will be SGX’s bread and butter for years to come, reflecting on manageable plans as opposed to aspirations, years ago, when the market got big international listings.
