Singapore’s struggling initial public offering (IPO) market is hoping for a turnaround in 2024, driven by real estate investment trusts (REITs). Japan’s Nippon Telegraph & Telephone Corp. is considering a data-center REIT listing worth up to $1 billion, with more REIT managers expected to follow due to recent sector rallies.
Singapore’s REIT index surged by 14% in the third quarter, regaining ground after earlier losses. Lower global interest rates have made REITs attractive by reducing borrowing costs and increasing dividend appeal.
Experts believe this could stimulate IPO activities, providing a much-needed boost to the Singapore Exchange, which is on track for its worst IPO year in 25 years.