SGX Surges on IPO Revival: Beyond NTT DC REIT, a New Era of Listings Unfolds
The $SGX(S68.SI)$
Diverse IPOs Bring New Investment Choices — What You Should Know
This IPO wave is not just about the headline-grabbing NTT DC REIT. Several companies from different industries are gearing up to list on SGX, offering investors fresh opportunities to diversify.
NTT DC REIT is set to become one of the largest IPOs on the Singapore Exchange in recent years. The REIT's portfolio includes six data centers located across the United States, Austria, and Singapore, with a combined appraised value of approximately US$1.6 billion. This gives investors exposure to key global data center markets, a sector benefiting from rising demand for cloud computing, AI, and 5G infrastructure.
The IPO aims to raise between US$770 million and US$860 million, with a market capitalization expected to exceed US$1 billion. Singapore's sovereign wealth fund GIC and several prominent private asset managers, including AM Squared Ltd and Viridian Asset Management, have already committed as cornerstone investors, signaling strong institutional confidence.
Analysts highlight the REIT's stable income profile backed by high occupancy rates and diversified geographic exposure. If successful, NTT DC REIT would be the largest data center REIT listing on SGX since Digital Core REIT's US$977 million IPO in 2021, marking a significant milestone for Singapore’s capital markets.
Meanwhile, Info-Tech, Singapore's first pure SaaS human resource management software company to list on SGX's mainboard, is set to debut soon. Analysts see this as a milestone for Singapore's tech sector, with strong cornerstone investor backing of over 41 million shares. This IPO offers retail investors a chance to get exposure to the fast-growing cloud software market.
Lum Chang Creations, an interior fit-out specialist, recently reported a 62% jump in net profit to S$5.3 million in the first half of 2025, driven by high-margin conservation and restoration projects. The company plans to use IPO proceeds to expand regionally and grow its portfolio in high-end residential projects. Analysts view Lum Chang as a niche player with steady cash flow and growth potential in Singapore's construction sector.
Other companies preparing for SGX listings include Daruma Capital, a Malaysian firm operating the Chizu Café chain, aiming to leverage Singapore’s capital market for regional expansion. Supported by Temasek's SeaTown Holdings, Foundation Healthcare, a multi-specialty medical group, is also planning to list, tapping into the growing healthcare demand in the region. Additionally, China Medical System, currently listed in Hong Kong, is pursuing a secondary listing on SGX's mainboard, signaling increasing cross-border interest.
Why Are More Companies Choosing SGX Now?
Singapore has recently introduced a series of reforms and incentives aimed at making it easier and more attractive for companies to list on SGX.
The Monetary Authority of Singapore (MAS) and SGX Regulation have proposed simplifying IPO rules by reducing disclosure requirements, easing profitability thresholds, and allowing companies to engage with investors earlier in the process. These changes lower barriers especially for high-growth sectors like technology, biotech, and sustainability, which traditionally found SGX's rules restrictive. Additionally, the government offers tax rebates—up to 20% for primary listings—to reduce IPO costs, alongside a S$5 billion equity market development fund to boost liquidity and investor participation.
Beyond regulatory changes, Singapore's political stability and strategic location continue to draw companies seeking a reliable and neutral financial hub amid global uncertainties. Many firms from China, Southeast Asia, and beyond view SGX as a gateway to regional markets. The improved market liquidity and investor base also give companies confidence that their shares will be actively traded post-listing, making SGX an increasingly competitive choice compared to other regional exchanges like Hong Kong or Malaysia.
What Are Analysts Saying About This IPO Momentum?
Analysts generally welcome the renewed IPO activity as a positive sign for SGX's market revival and diversification. The pipeline now includes real estate investment trusts (REITs), healthcare, technology, and consumer companies, reflecting a broader appeal. However, competition from larger exchanges, especially Hong Kong, remains strong due to their deeper liquidity and larger investor pools.
Experts emphasize that SGX must continue refining its regulatory framework and incentives to attract more high-growth and tech-focused companies. While institutional cornerstone support for new listings is encouraging, investors should stay mindful of liquidity constraints and valuation risks that have historically weighed on SGX stocks. Overall, the outlook is cautiously optimistic, with market watchers expecting 4 to 10 IPOs in 2025, signaling a potential rebound after several subdued years.
What Investors Should Keep in Mind
For individual investors, this IPO rush offers exciting chances to diversify portfolios and get in early on promising sectors like cloud services and healthcare.
However, it's important to stay mindful of risks, such as market volatility or IPO valuations. Watching cornerstone investor participation can be a helpful signal of a company's potential stability.
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