SINGAPORE (Reuters) -Shares of NTT DC REIT, a data centre real estate investment trust, were steady in its first full trading session on Tuesday, a day after making a modest debut that sparked optimism for Singapore’s IPO market revival, traders said.
NTT DC REIT last traded at $1.00 per unit, on par with its IPO offer price, and reached as high as $1.03 in its afternoon debut on Monday.
WHY IT’S IMPORTANT
The listing of NTT DC REIT highlights growing global interest in Asia-Pacific data centres and signals a potential resurgence in Singapore’s subdued IPO market.
KEY QUOTES
“NTT DC REIT’s market reception demonstrates mature institutional discipline and sophisticated price discovery,” said Oriano Lizza, sales trader at CMC Markets.
“The modest price movement reflects sophisticated investor discipline rather than retail speculation,” Lizza added.
BY THE NUMBERS
The REIT raised $773 million, marking Singapore’s largest IPO in four years since Digital Core REIT’s $977 million debut in 2021, according to LSEG data.
NTT DC REIT holds six data centres worth $1.6 billion in Austria, Singapore, and the United States. Major investors include Singapore’s sovereign wealth fund GIC with a 9.8% stake and NTT Ltd with 25%.
WHAT’S NEXT
The successful listing of NTT DC REIT may pave the way for more REIT IPOs in Singapore, with DBS’s global head of equity capital markets, Art Karoonyavanich, noting a “broad base of potential REIT IPOs on the horizon”.
(Reporting by Sameer Manekar and Yantoultra Ngui; additional reporting by Roushni Nair; Editing by Kim Coghill)
