JustCo targets S$100 million mainboard IPO to expand into existing and new markets

[SINGAPORE] Home-grown flexible workspace operator JustCo aims to raise S$100 million in gross proceeds through an initial public offering (IPO) on the Singapore Exchange (SGX) mainboard.

Post-listing, it would have an estimated market capitalisation of about S$459.9 million.

The IPO consists of 32.1 million shares priced at S$0.94 each, based on JustCo’s final offer document on Friday (May 15).

Of these, 25.8 million shares have been allocated to institutional and other investors. The remaining 6.3 million shares will be offered to the public in Singapore.

Separately, cornerstone investors have agreed to subscribe to 74.3 million new shares at the offering price.

“The stars are aligned for the IPO,” executive chairman, CEO and co-founder Kong Wan Sing told The Business Times on Friday in an interview at The Collective Labrador Tower, JustCo’s first luxury co-working space in Singapore.

Founded in 2011, JustCo operates 54 workspace centres across 12 Asia-Pacific cities, with around 37,500 workstations and 1.9 million square feet (sq ft) of net lettable area (NLA).

Besides its eponymous workspace brand, it runs luxury concept The Collective and essentials-focused the boring office.

Kong said he initially thought 2020 or 2021 would be ideal for an IPO, until Covid-19 disrupted those plans. Even when the pandemic was over, he did not want to rush into a listing.

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He told BT in a December 2020 interview that the company intended to go public one day.

“I told my team and board to give me three years to prove that revenue will grow so I have a track record to prove that financially, this business is sustainable,” he said.

After those three years, improving financial performance and broader efforts to revitalise Singapore’s equities market – including the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP) – gave him the confidence that the timing was right for an IPO.

He noted that the response from cornerstone investors has been encouraging, with around 70 per cent of the offering taken up by major names.

These include EQDP-appointed fund managers JP Morgan Asset Management, Avanda Investment Management, Fullerton Fund Management and Amova Asset Management Asia.

The placement tranche has also drawn strong participation.

JustCo’s offer closes at noon on May 20, with the shares expected to commence trading on the SGX mainboard on May 22.

Sense of responsibility

Kong said the decision to list on SGX instead of bourses elsewhere was driven by the company’s Asian focus, scale and support network.

He stressed that JustCo is fundamentally an Asian business, with operations anchored in the region rather than the US or Europe.

Beyond commercial considerations, he also felt a sense of responsibility to support Singapore’s capital markets.

“Without GIC, I would not be here today,” he said.

The sovereign wealth fund first invested in JustCo in 2018 and is now the co-working space operator’s largest shareholder with a 29.1 per cent stake.

Right after the listing, GIC’s holdings will stand at 22.7 per cent as JustCo is issuing new shares for the IPO.

Frasers Property is another notable investor, holding 22.5 per cent of the company. It is expected to remain a key shareholder after JustCo goes public, alongside GIC.

Kong hopes the listing will prove that a Singaporean company can have a successful IPO on the local bourse.

It also comes amid efforts by MAS to encourage more local growth companies to list domestically, even as many of them continue hesitating over valuation and liquidity concerns.

JustCo is set to become the fifth company to list on SGX this year. It will also be the second to make its trading debut on the mainboard, after UI Boustead Real Estate Investment Trust (Reit) listed in March.

In April, events manager Kin Global commenced trading on the Catalist board. Customer experience platform Toku and co-living operator The Assembly Place both made their Catalist debuts in January.

JustCo expects to raise net proceeds of about S$92.2 million from the offering and issuance of cornerstone shares, excluding discretionary incentive fees and assuming the overallotment option is not exercised.

If the overallotment option is exercised in full, the estimated net proceeds would expand to about S$97.1 million.

The company intends to use the proceeds primarily for strategic investments and capital expenditure to support its expansion plans in existing and new markets, as well as for general corporate purposes and working capital.

JustCo intends to open 28 centres in 2026, adding 689,000 sq ft of NLA.

Japan will account for 179,000 sq ft or 26 per cent of the planned expansion. Hong Kong, India, Malaysia and the Philippines will contribute about 192,000 sq ft or 28 per cent.

Existing markets will make up the remaining 318,000 sq ft or 46 per cent of the additional NLA planned for this year.

Riding on flexible workspace sector growth

JustCo recorded an occupancy rate of 84 per cent in its 2025 financial year and aims to operate more than 100 centres across 20 cities by 2029.

Kong said flexible workspace demand in the Asia-Pacific has grown by more than 50 per cent over the past three years, rising from more than 50 million sq ft in 2022 to above 80 million sq ft in 2025.

Despite this, flexible workspace penetration remains relatively low at about 5 per cent of total office space in the region. In comparison, such penetration in mature markets exceeds 10 per cent.

For FY2025, JustCo recorded revenue of US$150.8 million and cash earnings before interest, taxes, depreciation and amortisation of US$13.8 million.

DBS and UBS Singapore are the joint issue managers and global coordinators for the IPO. Together with Maybank Securities, they are also the joint bookrunners and underwriters.