AirTrunk is delaying its planned $1.5B Singapore REIT IPO until next year, Bloomberg reports. The Australian data center firm had intended to begin testing the waters with investors this month.
AirTrunk was acquired by Blackstone and the Canada Pension Plan Investment Board in 2024 in a $16B deal. AirTrunk had considered increasing the offering's yield from 5.5% to 6% to bolster demand, according to Bloomberg. U.S. interest rate increases in September continued to erode investor appetite, ultimately prompting AirTrunk to delay the public offering.
The delay comes as higher interest rates have put pressure on REIT valuations, which are particularly sensitive to changes in borrowing costs and bond yields. At least five other firms connected to the data center industry are pausing or canceling IPO plans.
Last week, Philippine data center REIT Vitro delayed its proposed IPO to 2027, citing rising interest rates and market conditions. Nvidia-backed Australian neocloud Firmus Grid canceled a planned $5B IPO earlier this month. SB Energy delayed its planned September IPO after investors reportedly balked at its proposed valuation north of $50B.