The offering comprises a placement of 75 million placement shares to investors in Singapore and outside the United States as well as a public offer of 5.3 million public offer shares in Singapore.

 

[SINGAPORE] Property management services group LHN&rsquo s co-living business Coliwoo has launched its initial public offering (IPO) of 80.3 million shares at S$0.60 each, in conjunction with its listing on the mainboard of the Singapore Exchange (SGX).

 

The company registered its prospectus on Tuesday (Oct 28), and its shares are expected to start trading on Nov 6. 

 

The offering includes a placement of 75,004,000 shares to institutional and other investors, both within Singapore and internationally, excluding the United States. Additionally, a public offer of 5,300,000 shares will be made available to investors in Singapore.

 

Cornerstone investors, typically large institutions that subscribe before an IPO opens to the public, have also entered into separate agreements to subscribe for new shares. They include Avanda Investment Management, Maybank Asset Management Singapore and UOB Asset Management.

 

These cornerstone subscriptions amount to 87,996,000 shares at the offering price with these shares collectively representing approximately 18.3 per cent of the total shares issued at the time of listing.

 

Net proceeds from the offering, including the cornerstone subscriptions, are expected to total approximately S$96.2 million.

 

Following the offering, Coliwoo&rsquo s post-offering share capital is expected to stand at 480,800,000 shares, valued at an estimated S$288.5 million based on the offering price.

 

Maybank Securities is serving as the IPO issue manager and global coordinator. It is also acting as joint bookrunner and underwriter for the offering, along with DBS Bank and RHB Bank.

 

Use of proceeds

Based on the offering price of S$0.60, the gross proceeds from the offering and the cornerstone tranche are expected to total approximately S$101 million.

 

After deducting underwriting and placement commissions, along with estimated offering expenses (but excluding any discretionary incentive fees), the estimated net proceeds from the offering and the cornerstone tranche will be approximately S$96.2 million.

 

Coliwoo plans to allocate approximately S$40 million of the gross proceeds to expand and enhance its co-living business through leased properties in existing and new markets. 

 

Another S$34 million will be used for similar purposes through owned and joint venture properties. S$12 million will be directed towards loan repayment, and the remaining S$10.2 million will cover general working capital needs, including manpower, marketing, and professional fees.

 

Coliwoo intends to recommend and distribute dividends of no less than 40 per cent of the group&rsquo s profit attributable to equity holders, after adding back listing expenses. These dividends will be paid either as an annual or interim dividend for FY2025 and FY2026.

 

Strong pipeline

Coliwoo was founded in 2019. Its property portfolio comprises 25 properties in &ldquo high-demand locations&rdquo across Singapore. Of this, 11 are owned by the group, 10 are leased, and four are managed by the group. 

 

It also holds a strategic 30 per cent interest in The Bus Hotel, its associated company that leases the property which operates resort hotel The Bus Collective.

 

The company plans to expand its portfolio to nearly 4,000 rooms in Singapore by the end of 2026, up from the current 2,933 rooms.

 

By 2030, the group intends to have about 10,000 rooms in Singapore, LHN executive chairman Kelvin Lim said in an interview with The Business Times last month.

 

Coliwoo noted in its prospectus that its prospects are supported by favourable industry trends and the growing demand for co-living spaces in Singapore. Government initiatives are also helping to meet the rising need for co-living and other short-term accommodation options. 

 

The company has a strong pipeline of co-living launches, with plans to add at least 800 rooms annually over the next two to three years.

 

This includes two new developments at 141 Middle Road and 260 Upper Bukit Timah Road, which are expected to generate revenue in 2026. 

 

With a &ldquo proven business model and brand recognition&rdquo , Coliwoo said it is also well-positioned to expand into high-potential regional markets across South-east Asia, including Jakarta, Bangkok, Kuala Lumpur and Johor Bahru.

 

In the first half of FY2025, the company recorded a revenue of S$23.1 million and net profit of S$9.3 million. Earnings per share stood at S$0.0299, based on a pre-offering and paid-up share capital of 312.5 million shares. 

 

Average occupancy was above 95 per cent for all properties in its portfolio. 

 

The company&rsquo s total assets as at Mar 31 was S$408.3 million, with total liabilities of S$331.5 million. This translates to a net asset value per share to S$0.2417. 

 

However, as Coliwoo prepares for its listing, it faces a competitive co-living market. Holding around 20 per cent of the market share, Coliwoo must navigate competition from other key players such as Habyt, Cove and The Assembly Place.

 

Its IPO closes at noon on Nov 4.

The property portfolio of Coliwoo comprises 25 properties in &lsquo high-demand locations&rsquo across Singapore

 

[SINGAPORE] Shares of property management services company   LHN   : 41O +2.15% jumped on Wednesday (Oct 1) morning after its co-living unit, Coliwoo, lodged a preliminary prospectus for a listing on the mainboard of the Singapore Exchange. 

 

The counter shot up to S$0.96 at market open, and was trading at S$0.995, up 7 per cent or S$0.065 as at 9.37 am. By 10.40 am, its shares eased to S$0.985, still trading 5.9 per cent higher, before rising again to S$0.99. 

 

The proceeds of the initial public offering will be primarily used for the asset enhancement, expansion and growth of Coliwoo, said the group. This would take place through the leasing and owning of properties in existing, as well as new markets.

 

A portion will also go towards loan repayments and general working capital, including operating expenses such as manpower costs, marketing expenses and professional fees, reported The Business Times on Tuesday. 

 

The property portfolio of Coliwoo comprises 25 properties in &ldquo high-demand locations&rdquo across Singapore &ndash 11 are owned by the group, 10 are leased and four are managed by the group.  

 

For H1 FY2025, the co-living unit posted a revenue of S$23.1 million and net profit of S$9.3 million. Earnings per share stood at S$0.0299, based on a pre-offering and paid-up share capital of 312.5 million shares. 

Proceeds will be primarily used for expansion, growth and asset enhancement through the leasing and owning properties in existing and new markets

 

[SINGAPORE] Property management services group LHN&rsquo s co-living business Coliwoo has lodged a preliminary prospectus for a listing on the mainboard of the Singapore Exchange. 

 

Coliwoo&rsquo s property portfolio comprises 25 properties in &ldquo high-demand locations&rdquo across Singapore. Of this, 11 are owned by the group, 10 are leased, and four are managed by the group. 

 

It also holds a strategic 30 per cent interest in The Bus Hotel, its associated company that leases the property which operates resort hotel The Bus Collective. 

 

The company aims to expand its portfolio to close to 4,000 rooms by the end of 2025, from 2,933 rooms currently. 

 

By 2030, the group intends to have about 10,000 rooms in Singapore, LHN executive chairman Kelvin Lim said in an interview with The Business Times earlier this month.

 

&ldquo This growth will be driven by a combination of upcoming developments, master lease agreements and management contracts,&rdquo said Coliwoo in its offer document on Tuesday (Sep 30). &ldquo Through these initiatives, we aim to strengthen brand presence, and reinforce our position as Singapore&rsquo s leading co-living operator.&rdquo

 

Proceeds of the initial public offering will be primarily used for the expansion, growth and asset enhancement of Coliwoo through the leasing and owning of properties in existing and new markets, it said. 

 

A portion will go towards loan repayments and general working capital, including operating expenses such as manpower costs, marketing expenses and professional fees. 

 

In a separate bourse filing on Tuesday evening, LHN said Coliwoo and Globalpoint Far East have signed a non-binding term sheet with an independent buyer to sell Coliwoo PP for about S$43.9 million plus its adjusted net asset value. 

 

Coliwoo PP is an indirect wholly owned subsidiary of LHN, which holds an 80 per cent interest in it. Globalpoint Far East holds the remaining 20 per cent interest in Coliwoo PP. It was first incorporated in January 2021, and is the registered owner of Coliwoo Hotel Pasir Panjang. 

 

Should the deal go through, Coliwoo PP will cease to be a subsidiary of LHN, which is listed on the Singapore Exchange and Hong Kong Stock Exchange. Coliwoo will then enter into a master lease agreement with the buyer for a lease back of the property for six years, it said.  

 

In the first half of FY2025, Coliwoo recorded a revenue of S$23.1 million and net profit of S$9.3 million. Earnings per share stood at 2.99 Singapore cents, based on a pre-offering and paid-up share capital of 312.5 million shares. 

 

Average occupancy was above 95 per cent for all properties in its portfolio. 

 

The company&rsquo s total assets as at Mar 31 was S$408.3 million, with total liabilities of S$331.5 million. This translates to a net asset value per share to 24.17 Singapore cents. 

 

&ldquo Our strategic growth plan targets adding at least 800 rooms on a yearly basis to our portfolio, with an aim to have close to 4,000 rooms by the end of 2026,&rdquo said Coliwoo. &ldquo To complement this expansion, we are actively exploring capital recycling strategies and moving towards an asset-light management model.&rdquo

 

The company believes it is well-positioned for further development and growth, given the rising demand for flexible living options in Singapore. 

 

More institutional investors are also drawn to the sector, and the government has introduced new initiatives to help meet the increasing demand for co-living and other short-term accommodations, it said. This includes the tendering of state properties for conversion into co-living spaces or serviced apartments. 

 

Additionally, Coliwoo said, it has a strong pipeline of upcoming co-living launches over the next two to three years, to add at least 800 rooms on a yearly basis to its portfolio. 

 

In the near term, the company said, it will continue focusing on adaptive reuse or space optimisation by acquiring relatively older commercial buildings and shophouses, transforming them into co-living spaces, serviced apartments or hotels. 

 

&ldquo Our company intends to explore into overseas markets at the appropriate time and when suitable opportunities arise, relying on the experience and expertise of its management team &hellip as well as riding on the business network of our group&rsquo s key stakeholders&hellip   to source for overseas expansion opportunities,&rdquo Coliwoo added. 

 

UOB Kay Hian is maintaining is &ldquo buy&rdquo call with a higher target price of $1.12, on the back of the group intending to spin-off list its co-living business Coliwoo, while its self-storage business sees growth.

 

On Sept 9, LHN, along with its 3QFY2025 ended June 30 business update, announced that it has received approval from the Singapore Exchange to list Coliwoo.

 

See more: LHN to spin-off and list co-living business posts growth in 3QFY2025 update

 

&ldquo We view this as a key milestone, as the IPO will enhance transparency, provide direct capital access, and crystalise value for shareholders,&rdquo says analyst Heidi Mo in a Sept 25 report.

 

After the listing, LHN is expected to hold approximately 70% of Coliwoo, retaining majority exposure to its growth. With expansion to 2,960 keys in 3QFY2025, and a target of 800 new keys annually, Coliwoo remains LHN&rsquo s largest growth driver.

 

Its robust pipeline includes a 212-key serviced apartment at Middle Road and a 382-key resort-themed chalet at Jalan Loyang Besar, slated to be operational in FY2026.

 

Thus far, the group&rsquo s occupancy across its Coliwoo portfolio remains strong with numbers rebounding to 96.7% by September, after a temporary dip from new launches.

 

&ldquo With rates at 40-50% below hotels but offering serviced amenities, Coliwoo continues to attract expatriates, corporates and students,&rdquo says Mo.

 

UOBKH cites a JLL report that shows foreign students are a major driver of co-living demand in Singapore, with arrivals expected to exceed 60,000 annually by 2026, many seeking flexible housing. Mo believes that this trend reinforces resilient rental demand and supports Coliwoo as a core earnings contributor.

 

Meanwhile, the group&rsquo s Work+Store brand is scaling into specialised formats such as air-conditioned and wine storage, tapping into rising demand for flexible storage solutions. Singapore&rsquo s self-storage industry is expanding rapidly, with demand estimated to grow 10-15% annually.

 

&ldquo With shrinking home sizes, rising residential costs and land scarcity fuelling demand, LHN&rsquo s Work+Store, which integrates storage and workspace, is well-positioned to capture this growth,&rdquo says Mo.

 

The group&rsquo s facilities management segment had also secured 17 new contracts and nine renewals in the third quarter, bringing its client base to 126. LHN&rsquo s carpark management business, with 100 sites over 27,000 lots, also provides a stable recurring income. The energy division has grown to 9.6MW of installed solar capacity, supplemented by EV charging points.

 

&ldquo These segments, though smaller, are showing positive contribution trends and help diversify the group&rsquo s earnings,&rdquo says Mo.

 

On the other hand, the group is also continuing its capital recycling efforts, as it completes the $25.8 million divestment of 115 Geylang Road, while 471 Balestier Road and 404 Pasir Panjang Road are underway. Proceeds are being redeployed into Coliwoo projects and other growth initiatives, while the analyst views the current gearings as &ldquo manageable&rdquo .

 

&ldquo The increasing reliance on master leases and management contracts underpins an asset-light strategy, enabling scalable growth without excessive strain on the balance sheet. This ensures sustainable cash flow generation and supports reinvestment into higher-yielding businesses,&rdquo says Mo.