GIC-backed co-working firm JustCo ends 17.6% below IPO price in lacklustre mainboard debut

[SINGAPORE] Shares of flexible workspace operator JustCo fell below their initial public offering price in a tepid mainboard debut on Friday (May 22).

This marked Singapore Exchange’s fifth listing and second mainboard debut in 2026.

The counter opened at S$0.835, 11.2 per cent or S$0.105 below its IPO price of S$0.94 per share. It ended the day at S$0.775, 17.6 per cent or S$0.165 below its IPO price, with 10.9 million shares changing hands.

DBS, in its capacity as stabilising manager for the IPO, said that it bought 3.4 million JustCo shares on Friday at between S$0.80 and S$0.87 apiece.

The lacklustre debut follows the close of JustCo’s IPO of 32.1 million offering shares, which was 3.4 times subscribed.

The offering included an international offer with a placement of 25.8 million shares to institutional and other investors in Singapore, as well as to foreign institutional and selected investors outside the US.

The international offer was 3.6 times subscribed, representing S$91.9 million of demand.

Meanwhile, the Singapore public offer component comprised 6.3 million shares; 1,069 valid acceptances were received for nearly 17 million shares, amounting to around S$15.9 million received and a subscription rate of 2.7 times.

Separate from the offering, JustCo secured commitments from nine cornerstone investors that subscribed for an aggregate of 74.3 million cornerstone shares. This represented 70 per cent of the total shares in issue post-offering.

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The cornerstone investors included Equity Market Development Programme-appointed fund managers Avanda Investment Management, JP Morgan Asset Management (Singapore), Amova Asset Management Asia and Fullerton Fund Management.

Together with the S$69.8 million in secured cornerstone commitments, the offering raised around S$100 million.

Kong Wan Sing, executive chairman and CEO of JustCo, said that the IPO results reflect market confidence in JustCo’s business.

The company is at an “inflection point”, having established its presence in the markets it operates in and built a “strong financial position”, he said.

“(We) intend to execute a well-calibrated strategic expansion plan. As we begin this new chapter as a publicly listed company, we remain focused on growth, and delivering long-term value to our members, partners and shareholders.”

Pol de Win, head of global sales and origination at Singapore Exchange, noted that JustCo’s debut marks the first pure-play, home-grown flexible workspace operator to be listed on the local bourse.

Founded in 2011, the Singapore-headquartered firm provides professional managed, flexible workspace solutions through its portfolio of brands, comprising The Collective, JustCo and essentials-focused the boring office.

It operates 54 workspace centres in 12 Asia-Pacific cities, with around 37,500 workstations and 1.9 million square feet of net lettable area.

While Kong initially intended to take JustCo public in 2020 or 2021, the Covid-19 pandemic disrupted those plans.

In a May 15 interview with The Business Times, Kong said he decided it was the right time for an IPO due to the company’s improving financial performance and efforts to rejuvenate Singapore’s equities market.

The decision to list JustCo in Singapore was due to the company’s focus in Asia, where its operations are anchored.

JustCo is backed by GIC and Frasers Property, which held stakes of 29.1 per cent and 22.5 per cent, respectively, before the IPO. GIC invested in JustCo in 2018 and holds a 22.7 per cent stake in the group after the issuance of new shares for the IPO.

JustCo aims to use proceeds from the offering and issuance of cornerstone shares for strategic investments and capital expenditure to expand in existing and new markets.

It plans to open 28 centres in 2026 in existing markets, as well as in Japan, Hong Kong, India, Malaysia and the Philippines.