Blackstone-backed AirTrunk delays Singapore property trust listing amid chip sell-off, sources say

Blackstone-backed data-centre operator AirTrunk has postponed a planned Singapore real estate investment trust (REIT) initial public offering (IPO) that could raise about $1.5 billion, two people with direct knowledge of the matter told The Straits Times.

AirTrunk was originally planning to launch the IPO in September or October, but put it on hold because of market conditions, the people said. They declined to be named because the information was confidential.

One person said AirTrunk has not decided when to launch the offering but is aiming to complete the listing by early 2027. AirTrunk did not immediately respond to a request for comment. Blackstone declined to comment. The Wall Street Journal first reported the delay on Oct 13.

The delay comes as Asian equities slid to more-than-two-month lows on Oct 13, led by a rout in chipmakers that renewed investor scrutiny of the artificial intelligence (AI) trade.

A thinner near-term listing pipeline

The trust was expected to be valued at about $15 billion, potentially making it one of South-east Asia’s largest listings in the coming months. The postponement also follows the scrapping of Firmus’ planned IPO, highlighting an increasingly difficult backdrop for large data centre and AI-linked equity offerings as investors reassess valuations, rising borrowing costs and the durability of AI-linked demand.

Singapore-based data centre operator DayOne is aiming to launch its US IPO before the midterm elections, Reuters reported in September.

The takeaway

According to the source, the trust was expected to be one of South-east Asia’s largest listings, making the delay notable for traders watching regional IPOs.