Workspace provider JustCo files preliminary prospectus for mainboard IPO

[SINGAPORE] Workspace provider JustCo on Thursday (May 7) lodged a preliminary prospectus to list on the mainboard of the Singapore Exchange.

The move follows a financial turnaround for the home-grown group, which posted a net profit of US$2.7 million for the year ended Dec 31, 2025, after booking a US$10.1 million loss a year earlier.

The group attributed the positive financial results to higher occupancy rates – which rose to 84 per cent in 2025 from 78 per cent the previous year – and a shift towards a capital-efficient management contract model.

Ahead of the offering, 74.3 million shares have been scooped up by cornerstone investors, including JP Morgan Asset Management, Amova Asset Management, Maybank Asset Management, Maybank Securities, Fullerton Fund Management and Avanda Investment Management.

The group did not specify when it would list on the mainboard.

Revenue for FY2025 came in at US$144.2 million, up 12.5 per cent from US$128.2 million a year earlier.

In FY2025, 88 per cent of the group’s revenue was derived from membership-related fees. Memberships are “typically contracted on fixed-term or recurring subscription arrangements”, the prospectus showed.

Service-related fees, including per-pay-use products for non-members, accounted for 11 per cent of revenue. The remaining 1 per cent was derived from management fee income, from management services and contracts.

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

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The group’s portfolio consists of “luxury offering” The Collective, “premium brand” JustCo, and an “essentials brand” known as the boring office. These, it said, allow it to “address a wide spectrum of customer preferences and price points”.

As at Dec 31, 2025, JustCo had 4,035 members occupying 29,422 workstations.

Core focus on Japan

Describing itself as being at an “inflection point”, JustCo said it intends to “execute a well-calibrated strategic expansion plan in 2026”. It plans to open 28 centres this year, which will bring its total to 78.

The expansion plans and business strategy will require a “significant amount of cash resources”, the group noted.

Japan will be a key market for the group, being “one of the world’s most resilient markets”. Strong domestic and international demand in the nation continues to support both traditional and flexible office leasing, JustCo noted.

Based on its current pipeline, the group expects to add about 179,000 sq ft of NLA and around 3,600 workstations in Japan.

Elsewhere, the group will also seek to enter new markets such as Hong Kong, India, Malaysia and the Philippines.

This entry into new markets is expected to add 192,000 sq ft of NLA and 3,900 workstations.

At the same time, JustCo said that it recognises the need to “protect and grow” its market share in its existing markets. It therefore has plans to add about 318,000 sq ft of NLA and 6,300 workstations in its existing markets.

The group added that it will “(strike) an appropriate balance between higher growth opportunities through traditional leasing arrangements and improved returns on capital through our management contract model” as it executes its expansion strategy.