Co-living operator The Assembly Place offers Catalist IPO at S$0.23 a share

[SINGAPORE] Home-grown co-living operator The Assembly Place (TAP) has launched its initial public offering (IPO) of about 50.3 million shares at S$0.23 each, and is expected to start trading on the Catalist board on Jan 23.

The company registered its prospectus on Thursday (Jan 15), offering a public float of two million shares. About 48.3 million are being offered as placement shares, which include around 10.6 million invitation shares reserved for subscription and/or purchase by the group’s management, directors and employees, as well as business associates.

Cornerstone investors, including Apricot Capital and Asdew Acquisitions, have entered into separate agreements to subscribe for about 29.5 million new shares at S$0.23 apiece.

Following the offering, TAP will have a share capital of about 383 million shares, giving the company an estimated market capitalisation of S$88.1 million.

It expects to raise gross proceeds of about S$18.3 million from the IPO offering and issuance of cornerstone shares.

Net proceeds from the listing are expected to be about $10.8 million. Of this, approximately 53 per cent will be allocated to portfolio expansion, about 37 per cent will be used for co-investments with property asset owners, and the remaining 10 per cent will be set aside for working capital.

The immediate priority for the group is to grow rapidly in Singapore, said executive director and chief executive officer Eugene Lim, adding that the company aims to transfer to the mainboard in two years’ time.

TAP manages and operates about 3,422 keys across 100 property assets. The company said that it has a market share of about 34 per cent as at Sep 30, 2025, based on number of keys, and is targeting more than 10,000 keys by end-2030.

Overall revenue rose from S$6.9 million in FY2022 to S$18.9 million in FY2024, at a compound annual growth rate of 66 per cent over the period. Net profit increased from S$300,000 in FY2022 to S$6.2 million in FY2024.

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In the first half of 2025, its top line was S$11.6 million and net profit was S$1.2 million. This is up from a revenue of S$8.1 million and earnings of S$400,000 in the same period a year earlier.

TAP will be bringing on board more property assets via direct lease agreements with property owners, and collaborating with partners to pool operational expertise and venture into new living sectors.

“The workers’ dormitory space is the final piece of the puzzle and we hope to grow in that space,” said Lim, adding that living standards and community engagement will be increasingly important in attracting and retaining younger, more educated migrant workers.

TAP expects to add about 610 keys to its portfolio over the next two years. This includes 192 keys at 400 River Valley Road, 60 keys at 63 South Bridge Road and 66 keys in Kuala Lumpur, Malaysia.

Slated to be operational in 2026, the Malaysian asset will be a hotel with community living elements under TAP’s “Social by The Assembly Place” brand.

Portfolio

Almost all – more than 90 per cent – of TAP’s top line is derived from what it called “community-driven stays”, its living-sector business.

The living sectors that TAP serves are residential co-living, hotels and serviced apartments, students’ accommodation, foreign healthcare professionals’ accommodation and intergenerational living.

Its properties have recorded occupancy rates above 90 per cent since FY2022 – reflecting sustained demand from its target segment of tenants aged 34 and below, stated the company.

Citing a Knight Frank report, TAP noted that the residential co-living segment is expected to hit about S$9.7 billion in addressable market value by 2030 – driven by a steady inflow of employment pass holders.

The hotels and serviced apartments segment is expected to reach S$2.5 billion by 2030, while foreign healthcare professionals’ accommodation is likely to hit S$27 million. International student enrolment is estimated to grow 2.5 per cent per annum over the next five years to reach S$1.6 billion in addressable market value by 2030, Knight Frank data showed.

Apart from its accommodation business, TAP offers services such as referral and project management to property asset owners under its property-related services segment.

The company also acquires minority stakes in entities that own property assets and may subsequently enter into tenancy, project management and/or property management agreements with these entities.

TAP’s asset-light model enables scalable growth without the significant capital outlay associated with traditional property ownership, noted the company. This has allowed TAP to grow from 311 keys in 2021 to about 3,422 keys, while maintaining a healthy capital structure and financial flexibility.

Post-listing, the group will continue its asset-light approach, taking no more than 20 per cent stake in properties, said Lim. “We are looking at probably three to five years (before exiting) – we will sell the full real estate asset.”

The group’s return on equity was 44.6 per cent in FY2024. As at June last year, external debt stood at about S$500,000, but this has been paid down since. As at end-June 2025, the group had a net cash position of S$1.5 million and generated positive net cash flows from operating activities of S$6.9 million in H1 2025.

Most capital expenditure is borne by asset owners, with TAP’s main capex related to furnishings at about S$1,200 per key. For smaller buildings, the group also incurs fit-out costs – spending about S$25,000 to S$30,000, for instance, to convert landed houses into co-living spaces, which are amortised over the lease term.

SAC Capital is the sponsor, issue manager, underwriter and placement agent for the IPO.

Tan Kian Tiong, partner and head of capital markets at SAC Capital, said: “The proposed listing of The Assembly Place comes at a time when Singapore’s stock market is seeing stronger momentum and active liquidity. We expect positive interest in the retail tranche of the proposed invitation.”