NTT DC REIT’s flat trading debut shows Singapore’s struggle to revive a ‘lackluster’ stock market

However, NTT DC Rit shares have been bad since its commercial appearance on Monday, as it fell less than the offer of $ 1.

The Hong Seng Index in Hong Kong increased by 25 % so far this year, while the Times Strait Index in Singapore increased by only 9 %.

“The lack of Singapore is directed towards growth, and the technical representation in The Sti has led to the Hang Seng tracked. This has led to a weak description of the market,” says Thilan Wickramasinghe, head of Singapore’s research at the Maybank Investment Banking group.

Singapore has not made three subscriptions to the subscriptions so far this year, including a list on July 14 of NTT DC Reit, whose shares started trading on Monday. Hong Kong, compared to more than 40 subscriptions.

NIPPON Telegraph and the phone collected $ 773 million in public subscription, making it the largest list in Singapore in eight years. In comparison, the largest subscriptions in Hong Kong this year were the Catl Secondary Varieties list in late May, which raised at least $ 4 billion.

NTT DC Reit IPO was supposed to give investors a way to take advantage of the demand fueled by artificial intelligence to data centers, and to grant the stock market in Singapore a batch of intensity. Instead, it may end up showing how much work to be done.

NTT DC Reit menu

NTT DC Reit consists of six data centers. There are four in the United States, with one in northern Virginia – the largest data center in the world – and three in northern California. There is one data center in Vienna, which is a fast -growing data center market. The latter in Singapore, the second largest data market in the Asia Pacific region after China.

Data centers are the key to operating artificial intelligence applications. These specialized data centers provide the storage of computer data and the storage capacity of the digital data needed to train increasingly complex artificial intelligence applications. Artificial intelligence applications, such as large language models, depend on huge amounts of data for training and operation.

Singapore has always been a regional center for the data center due to its infrastructure, a lack of natural disasters, and its location as a major node for the surface cables.

Treat artificial intelligence requires huge amounts of computing power, both for training and reasoning, which in turn sparked a boom in investing the data center. NTT hopes to capture those that need a data center capacity, using revenue from its list to continue planting its data center. The company plans to develop more than 850 megawatts of capacity throughout the Americas, Europe, the Middle East, Africa and Asia.

NTT estimates that the total annual cloud revenue and AI are expected to grow at an annual growth rate of about 23 % between 2024 and 2027, driven by the demand led by artificial intelligence.

Asia and the Pacific Ocean attracted $ 15.5 billion in the investment of the Data Center last year, more than any other region in the world, according to real estate consultations, Knight Frank.

Consultations expect that global capital expenditures exceed 286 billion dollars by 2027, as operators respond to the increasing demand for improved infrastructure of the imported organization, cloud services, and digital initiatives for institutions.

Stock Market in Singapore

Doug Adams, CEO of NTT Global Data Center, explained that the company chose Singapore because of its appreciation of data centers.

“The Singapore Market is a great market for data centers in general, and we believe that the best market in the world to treat real estate investment funds in the data center,” Adams said in an interview with CNBC International on Monday. “In Singapore, they appreciate a global group of origins looking for a drip feeding from the origins over time, which is what we look forward to achieving our wallet.”

GIC, the sovereign wealth fund in Singapore, is one of the public subscription investors. GIC has a 9.8 % stake in NTT DC Reit, making it the second largest investor after NTT.

Singapore is trying to raise the stock exchange’s fortunes, including a 20 % tax discount on the initial menus.

The country’s stock market is often criticized as boring or non -liquid, as sectors such as property, blocs, and the three large local banks dominate SGX. Weak liquidity weakens investor morale, which then leads to low assessments or even fewer lists.

While the exchange of exchange in Singapore, Hong Kong is rising, which Wikramasing is strengthening to “Debceic Moment” and Beijing’s position supporting growth.

Lauren Tan, stock manager in Asia in Morningstar, notes that the Hong Kong market is also recovering from years of weak performance, making the market “relatively cheap in the terms of evaluation.” She adds that the breakthrough in Hong Kong, subscriptions, may also be due to the granting of Chinese organizers their approval of the main mainland companies in Hong Kong.

Hong Kong’s modern subscriptions include Midea Group, ICE CREAM GIANT MIXUE, and the believer group FWD. Other giants such as Chery’s auto maker, start starting artificial intelligence, Malaysian airline, Fast Fashion Shein, Hong Kong Working Works.

Hong Kong is now scheduled to be the best destination in the world for public subscription this year, according to the S& P Global Market Intelligence.

However, Wickramasinghe is optimistic that Singapore’s policy reforms should help the market to “get rid of its faded image to move forward.”

“The last list of NTT DC Reit is an early reference to the return lists. We expect this momentum to accelerate to H2,” says Wickramasinghe.