JustCo eyes $78m IPO in Singapore, more APAC openings

Photo credit: JustCo

JustCo, a Singaporean flexible workspace operator, aims to raise S$100 million (US$78.1 million) in gross proceeds through an initial public offering (IPO) on the Singapore Exchange (SGX) mainboard.

Post-listing, it would have an estimated market capitalization of about S$459.9 million (US$359.3 million).

The IPO consists of 32.1 million shares priced at S$0.94 (US$0.73) each, based on JustCo’s final prospectus on May 15. Of these, 25.8 million shares have been allocated to institutional and other investors.

The remaining 6.3 million shares will be offered to the public in Singapore. Separately, cornerstone investors have agreed to subscribe to 74.3 million new shares at the offering price.

“The stars are aligned for the IPO,” Kong Wan Sing – JustCo CEO and co-founder – told The Business Times on May 15 in an interview.

Founded in 2011, JustCo operates 54 workspace centers across 12 Asia-Pacific cities, with around 37,500 workstations and 1.9 million square feet (176,500 square meters) of net lettable area, referring to total lettable floor space in commercial office buildings.

Kong said he initially thought 2020 or 2021 would be ideal for an IPO, until Covid-19 disrupted those plans. Even when the pandemic was over, he did not want to rush into a listing.

He noted that the response from cornerstone investors has been encouraging, with around 70% of the offering taken up by major names. These include EQDP-appointed fund managers JP Morgan Asset Management, Avanda Investment Management, Fullerton Fund Management, and Amova Asset Management Asia.

See also: JustCo narrows losses after 2 key market exits

The placement tranche has also drawn strong participation. JustCo’s offer closes at noon on May 20, with the shares expected to commence trading on the SGX mainboard on May 22.

Kong said the decision to list on SGX instead of bourses elsewhere was driven by the company’s Asian focus, scale, and support network. He stressed that JustCo is fundamentally an Asian business, with operations anchored in the region rather than the United States or Europe.

Beyond commercial considerations, he also felt a sense of responsibility to support Singapore’s capital markets. “Without GIC, I would not be here today,” he said.

The sovereign wealth fund first invested in JustCo in 2018 and is now the co-working space operator’s largest shareholder with a 29.1% stake. Right after the listing, GIC’s holdings will stand at 22.7% as JustCo is issuing new shares for the IPO.

More openings this year