Japan's Nippon Telegraph and Telephone Corp (NTT) has indeed lodged a preliminary initial public offering (IPO) prospectus for its data center real estate investment trust (REIT), NTT DC REIT, on the Singapore Exchange (SGX). This move signals a significant development for both NTT and the Singapore market.
Here are the key details reported:
* REIT Name: NTT DC REIT
* Sponsor: NTT Ltd., which is part of the Japanese telecommunication giant NTT.
* Target Listing Exchange: Singapore Exchange (SGX)
* Portfolio: The preliminary prospectus highlights a portfolio of six data center assets located in the United States (four in Ashburn, Virginia, and Sacramento, California), Austria (one in Vienna), and Singapore (one in Singapore).
* Appraised Value of Portfolio: The total appraised value of these assets is approximately $1.6 billion.
* Potential IPO Size: While the exact IPO amount was not disclosed in the preliminary prospectus, sources familiar with the matter suggest it could be valued up to $1 billion, potentially making it the largest IPO in Singapore in several years.
* Pricing: NTT DC REIT plans to price its units at $1.00 per unit.
* Cornerstone Investors: The prospectus indicates that NTT has already secured several cornerstone investors, including Singapore's sovereign wealth fund GIC, as well as private investment and asset management firms like AM Squared Ltd and Viridian Asset Management Ltd. GIC is expected to subscribe for 100.88 million units, valued around $100.88 million.
* Strategic Rationale: This listing aims to capitalize on the booming global data center market, driven by increasing demand from cloud computing, artificial intelligence (AI), and digital transformation trends. Data centers are considered critical infrastructure, offering stable rental income.
* Significance for Singapore: The potential IPO represents a significant boost for the Singapore Exchange, which has seen a surge in IPO proceeds in the first half of this year. It also reinforces Singapore's position as a leading hub for REIT listings in Asia.
A preliminary prospectus is an initial draft of a registration statement filed with the regulatory authority (in Singapore's case, the Monetary Authority of Singapore or MAS). It provides potential investors with essential information about the company, the assets, the offering terms, risks, and management, but it's subject to completion and amendment before the final IPO launch. The actual IPO launch date was not specified in the preliminary filing, but earlier reports suggested a potential listing as early as July 2025.
0 Comments