NTT DC REIT Sees Modest Debut Following Singapore’s Largest IPO in Four Years

NTT DC REIT (SGX: NTTD.SI), a data centre-focused real estate investment trust, made a subdued debut on the Singapore Exchange on Monday, despite securing $773 million in proceeds in the city-state’s largest initial public offering in four years. The trust’s units opened at S$1.00 per unit and edged up to S$1.03 within the first 30 minutes of trading — a modest 3% gain — while Singapore’s benchmark Straits Times Index rose 0.4% during the same period (Reuters, July 14, 2025).

The new REIT is backed by NTT Ltd, part of Japanese telecom giant Nippon Telegraph and Telephone Corp (TSE: 9432.T), and owns six data centres located across Austria, Singapore, and the United States, collectively valued at approximately $1.6 billion. Singapore’s sovereign wealth fund GIC emerged as a cornerstone investor with a 9.8% stake, second only to NTT Ltd’s 25% holding, underscoring the appeal of data infrastructure assets amid surging demand for artificial intelligence services and cloud computing.

NTT DC REIT’s IPO is the largest in Singapore since Digital Core REIT’s $977 million listing in 2021 and Southeast Asia’s biggest since Thai Life Insurance’s $942.9 million offering in 2022, according to LSEG data (Reuters, July 14, 2025). The listing also highlights global investors’ growing appetite for data centre exposure in the Asia-Pacific, where rapid digitalisation continues to fuel expansion.

Singapore’s broader IPO pipeline is also strengthening. Art Karoonyavanich, global head of equity capital markets at DBS, said the market is seeing unprecedented variety within a 12-month horizon, spanning data centre, industrial, logistics, hospitality, commercial, and retail REITs. DBS estimates that upcoming REIT IPOs could raise between S$600 million ($468 million) and S$1 billion.

Meanwhile, other listings are following suit. Hong Kong-listed China Medical System Holdings Ltd (HKEX: 0867.HK) is set to debut a secondary listing on the SGX on Tuesday, aiming to tap regional capital and diversify its shareholder base. Companies such as Foundation Healthcare and Centurion Corporation (SGX: CNCL.SI) are also exploring new listings, including an employee dormitory REIT.

Singapore’s supportive policy measures, such as the 20% tax rebate announced in February for primary listings, have bolstered the appeal of the local equities market. The Straits Times Index has climbed over 8% year-to-date and posted record highs for nine consecutive sessions, according to LSEG data (Reuters, July 2025).

With investor enthusiasm for digital infrastructure strong and market reforms underway, industry watchers expect Singapore’s IPO momentum to continue building in the months ahead.