AirTrunk defers $1.5 billion Singapore REIT IPO to next year

AirTrunk is deferring its $1.5 billion Singapore REIT IPO until next year, Bloomberg reported via Bisnow. The Australian data center operator had planned to start testing investor demand this month, but higher interest rates and market volatility left appetite below expectations.

Bloomberg reported that AirTrunk had weighed lifting the offering's yield to 6% from 5.5% to strengthen demand. September's increase in U.S. interest rates eroded that appetite further and led to the delay.

AirTrunk says it has more than 3 GW of operating and planned capacity across 20 hyperscale campuses in Australia, India and Asia-Pacific. Blackstone and the Canada Pension Plan Investment Board acquired the company in 2024 in a $16 billion deal.

The delay follows other data center IPO pullbacks. Philippine REIT Vitro pushed its IPO to 2027; Nvidia-backed Firmus Grid canceled a planned $5 billion listing; SB Energy delayed its September IPO after investors balked at a valuation above $50 billion. Holtec also postponed a Nasdaq listing and Aggreko slowed its IPO process.

Last month this publication argued that debt has begun pricing construction and concentration risk in data centers while equity has not. Our September look at Blue Owl's data center REIT treated a $6.5 billion seed as a pricing event. AirTrunk's delay postpones that kind of public price test.

AirTrunk says it is still weighing changes to the size and timing of the offering; the reporting does not specify a new date.