Coliwoo closes at S$0.585 on first trading day, 2.5% below IPO price
Its 5.3 million public offer shares were about 20.7 times subscribed
[SINGAPORE] Co-living business Coliwoo opened at S$0.615 on its listing debut on Thursday (Nov 6) on the Singapore Exchange, about 2.5 per cent above its initial public offering (IPO) price.
By 9.03 am, shares of Coliwoo eased to S$0.60. As at 9.14 am, the counter had dipped by around 1 per cent to S$0.595.
The company had offered 80.3 million shares at S$0.60 each, including 75 million under a placement tranche.
For its IPO, the company’s 5.3 million public offer shares were about 20.7 times subscribed. At the close of the public offer at noon on Tuesday, the co-living operator had received 2,739 valid applications for the offer shares.
Maybank Securities was the issue manager and global coordinator for the offering, and acted as the joint book runner and underwriter alongside DBS and RHB Bank.
The company said that about 547.7 million placement shares received indications of interest, resulting in the placement being around 7.3 times subscribed.
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It added that its IPO raised total gross proceeds of around S$101 million. It plans to use the funds to mainly expand and enhance its co-living business – both through leased properties and via owned or joint-venture projects in existing and new markets.
A part of the proceeds will also go towards loan repayments, as well as general working capital needs such as operational, marketing and professional expenses.
Kelvin Lim, executive chairman and chief executive officer of Coliwoo, said: “The proceeds from our listing will support our growth strategy to add at least 800 rooms yearly to reach nearly 4,000 rooms by end-2026.”
Lim stepped down as group managing director of parent company LHN Ltd with effect from Thursday, to assume his role as CEO of Coliwoo. He will continue to serve as executive chairman and executive director of LHN Ltd.
His replacement as LHN Ltd’s group managing director is Lim Bee Choo, who served as deputy group managing director of the company. She is also the elder sister of the Coliwoo CEO.
Established in 2018 as a business segment of mainboard-listed real estate management services group LHN, Coliwoo at present manages a portfolio of 25 properties, comprising owned, leased and managed assets, in Singapore.
Its operations span 2,175 rooms under direct management, 350 rooms leased to third-party operators, and 408 rooms under enhancement or management services.
The company also noted that it intends to recommend dividends of not less than 40 per cent of the group’s net profit attributable to shareholders, either as an annual dividend or an interim dividend, for FY2025 and FY2026, reported The Business Times previously.
Shares of Coliwoo closed at S$0.585 on Thursday, 2.5 per cent below the IPO price.
Additional reporting by Low Youjin
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