NTT’s upcoming data centre Reit listing on SGX lifts hopes of breaking IPO drought

[SINGAPORE] The first half of 2025 has tested investor sentiment in Singapore’s equity market, but there are emerging signs that the tide may be turning.

The confirmation of a major new listing by Japan’s Nippon Telegraph and Telephone (NTT) has brought a timely boost to the Singapore Exchange (SGX), just as concerns about a string of delistings and weak initial public offering (IPO) activity have begun to mount.

In its financial results released on May 9, NTT released details of its planned real estate investment trust (Reit) listing here. Six of its data centre assets will be transferred to the proposed Singapore Reit called NTT DC Reit for the price of around US$1.6 billion.

“Our group plans to utilise this Reit as a scheme to accelerate the investment recovery cycle for data centres, generate additional investment funds, and maintain financial soundness,” said NTT in its statement.

NTT’s listing is likely to be the biggest IPO in Singapore since NetLink NBN Trust’s listing raised US$1.7 billion in 2017. The confirmation comes after media reports emerged last year that NTT was considering listing a data centre Reit in Singapore.

The size and scale of NTT’s listing will be a much-needed confidence booster for Singapore’s equity market, particularly in a year that has so far been marked by a dearth of new listings and a wave of delistings.

String of delistings

So far, the Singapore bourse has seen only one other listing this year – car dealer Vin’s Holdings , which listed on the Catalist board in mid-April.

Candy maker YLF Group Marketing withdrew its application for a Singapore IPO the same month citing “unfavourable” market conditions due to US tariffs.

Meanwhile, the local bourse has seen an exodus of companies since the start of this year.

At least 16 companies are on the delisting track as at the first week of May this year. They have either delisted, confirmed delisting dates or announced plans to exit the SGX.

Among those that have already delisted are offshore oil-and-gas contractor Dyna-Mac and software company Silverlake Axis in January.

Among those that are planning to go private are property developer Sinarmas Land and Paragon Reit .

Singapore’s fortunes stand in stark contrast to some other regional players.

Indonesia’s IPO market, for instance, has raised nearly US$420 million from 13 listings as at May this year – almost double last year’s tally for the same period.

In Hong Kong, IPOs have raised US$2.4 billion from 16 deals for 2025 as at May 6 – more than twice the US$1 billion raised from 15 IPOs over the same period in 2024.

Silver linings

Against this sobering backdrop, NTT’s confirmation could not be timelier.

Beyond its size, the listing by a global player such as NTT underscores continued international interest in Singapore as a listing venue. It provides a clear signal that the city-state’s capital markets still hold strong fundamentals, particularly in the Reit space where it continues to be a regional leader.

Other tailwinds may also help lift investor sentiment.

Trade tensions between the US and China – which had earlier weighed on investor confidence and dampened IPO appetites – are beginning to ease.

Last week, both countries agreed to temporarily reduce their tariffs on each others’ products over a 90-day cool-off period.

The US will lower its tariffs on Chinese imports from 145 per cent to 30 per cent, and China will decrease its duties on US goods from 125 per cent to 10 per cent.

The truce between the major powers have had an immediate impact on regional exchanges including Singapore’s. The Republic’s benchmark Straits Times Index jumped about 1.8 per cent or 68.82 points in morning trade on May 13 after the announcement.

Potential interest rate cuts by the US Federal Reserve later this year could also buoy equity markets and make fundraising through public markets more attractive for companies.

Moreover, investors can take heart in a second set of measures to be announced by the Monetary Authority of Singapore’s market review group later this year.

These measures are aimed at fostering the longer-term development and sustainable growth of Singapore’s equities market. They form part of broader efforts to rejuvenate the SGX and encourage new listings.

More to come

A few other new listings are slated to debut on the SGX.

They include a healthcare Reit by French property asset manager Praemia Reim, which could raise several hundred million US dollars, as well as a Reit by Centurion comprising some of its worker and student accommodation assets.

Immersive entertainment group Neon, which is backed by Temasek’s 65 Equity Partners, was also reported to be considering a Singapore IPO that could raise as much as S$500 million.

With NTT’s IPO anchoring a more promising second half, and with macroeconomic conditions turning more favourable, investors may yet find reason to remain confident in Singapore’s equity market.