APAC's data centre IPO season is warming up
Multiple operators are positioning for public markets.
As AirTrunk targets a September IPO in Singapore, we could be entering a season with multiple data centre IPOs over the next year. The pipeline is starting to build, and Singapore looks set to be the venue for much of it. Here is who is lining up.
AirTrunk
AirTrunk is in the advanced stages of preparing a Singapore REIT listing that could launch as early as September, though negotiations are ongoing, according to Bloomberg. The firm is said to be working with Citigroup, DBS, and Jefferies Financial Group on a deal that, at a reported US$1.5 billion, would be the largest in Singapore since 2017.
AirTrunk was acquired by a Blackstone-led consortium at an enterprise value of around US$16.1 billion. The REIT would see a slice of its data centre assets traded to raise fresh capital.
DayOne
Separately, DayOne Data Centre has reportedly been persuaded to do a dual listing on the NYSE and the Singapore Exchange (SGX). This was previously reported in May by Bloomberg and the Financial Times.
Under the just-approved rules, companies with a market value of more than US$1.5 billion can file a single set of paperwork to list simultaneously, with at least 15% of the IPO value on the SGX. Within the industry, DayOne has developed a reputation for extremely fast construction and for committing to delivery timelines that others won't.
Others
Other fast-growing operators are positioning themselves to go public too. Last July, NTT DC REIT listed on the SGX and raised US$733 million, making it one of the largest REIT IPOs on the exchange in nearly a decade.
In an interview last week with the Straits Times, BDx CEO Mayank Srivastava said that "all options are on the table" when asked whether BDx would consider a listing. I am aware of at least two other data centre operators working towards or planning an IPO, and I'm sure there are more I don't know about yet.
While the reasons for listing differ across operators, there is no question that demand for cloud and AI is driving a new wave of hyperscale data centre investments in the Asia Pacific. Whichever way you look at it, more IPOs mean more cash entering the ecosystem. And APAC's data centre boom is probably just getting started.
