LHN’s co-living unit Coliwoo to offer 80.3 million shares at S$0.60 apiece in mainboard listing
The offering comprises a placement of 75 million placement shares to investors in Singapore and outside the United States as well as a public offer of 5.3 million public offer shares in Singapore.
[SINGAPORE] Property management services group LHN’s co-living business Coliwoo has launched its initial public offering (IPO) of 80.3 million shares at S$0.60 each, in conjunction with its listing on the mainboard of the Singapore Exchange (SGX).
The company registered its prospectus on Tuesday (Oct 28), and its shares are expected to start trading on Nov 6.
The offering includes a placement of 75,004,000 shares to institutional and other investors, both within Singapore and internationally, excluding the United States. Additionally, a public offer of 5,300,000 shares will be made available to investors in Singapore.
Cornerstone investors, typically large institutions that subscribe before an IPO opens to the public, have also entered into separate agreements to subscribe for new shares. They include Avanda Investment Management, Maybank Asset Management Singapore and UOB Asset Management.
These cornerstone subscriptions amount to 87,996,000 shares at the offering price with these shares collectively representing approximately 18.3 per cent of the total shares issued at the time of listing.
Net proceeds from the offering, including the cornerstone subscriptions, are expected to total approximately S$96.2 million.
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Following the offering, Coliwoo’s post-offering share capital is expected to stand at 480,800,000 shares, valued at an estimated S$288.5 million based on the offering price.
Maybank Securities is serving as the IPO issue manager and global coordinator. It is also acting as joint bookrunner and underwriter for the offering, along with DBS Bank and RHB Bank.
Use of proceeds
Based on the offering price of S$0.60, the gross proceeds from the offering and the cornerstone tranche are expected to total approximately S$101 million.
After deducting underwriting and placement commissions, along with estimated offering expenses (but excluding any discretionary incentive fees), the estimated net proceeds from the offering and the cornerstone tranche will be approximately S$96.2 million.
Coliwoo plans to allocate approximately S$40 million of the gross proceeds to expand and enhance its co-living business through leased properties in existing and new markets.
Another S$34 million will be used for similar purposes through owned and joint venture properties. S$12 million will be directed towards loan repayment, and the remaining S$10.2 million will cover general working capital needs, including manpower, marketing, and professional fees.
Coliwoo intends to recommend and distribute dividends of no less than 40 per cent of the group’s profit attributable to equity holders, after adding back listing expenses. These dividends will be paid either as an annual or interim dividend for FY2025 and FY2026.
Strong pipeline
Coliwoo was founded in 2019. Its property portfolio comprises 25 properties in “high-demand locations” across Singapore. Of this, 11 are owned by the group, 10 are leased, and four are managed by the group.
It also holds a strategic 30 per cent interest in The Bus Hotel, its associated company that leases the property which operates resort hotel The Bus Collective.
The company plans to expand its portfolio to nearly 4,000 rooms in Singapore by the end of 2026, up from the current 2,933 rooms.
By 2030, the group intends to have about 10,000 rooms in Singapore, LHN executive chairman Kelvin Lim said in an interview with The Business Times last month.
Coliwoo noted in its prospectus that its prospects are supported by favourable industry trends and the growing demand for co-living spaces in Singapore. Government initiatives are also helping to meet the rising need for co-living and other short-term accommodation options.
The company has a strong pipeline of co-living launches, with plans to add at least 800 rooms annually over the next two to three years.
This includes two new developments at 141 Middle Road and 260 Upper Bukit Timah Road, which are expected to generate revenue in 2026.
With a “proven business model and brand recognition”, Coliwoo said it is also well-positioned to expand into high-potential regional markets across South-east Asia, including Jakarta, Bangkok, Kuala Lumpur and Johor Bahru.
In the first half of FY2025, the company recorded a revenue of S$23.1 million and net profit of S$9.3 million. Earnings per share stood at S$0.0299, based on a pre-offering and paid-up share capital of 312.5 million shares.
Average occupancy was above 95 per cent for all properties in its portfolio.
The company’s total assets as at Mar 31 was S$408.3 million, with total liabilities of S$331.5 million. This translates to a net asset value per share to S$0.2417.
However, as Coliwoo prepares for its listing, it faces a competitive co-living market. Holding around 20 per cent of the market share, Coliwoo must navigate competition from other key players such as Habyt, Cove and The Assembly Place.
Its IPO closes at noon on Nov 4.
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