More than 1 in 4 Singtel discounted share holders have sold their shares

As of August 31, approximately 27% of Singtel Special Discounted Share (SDS) holders, or 163,000 individuals, had sold their shares, a significant increase from 13% in April. In total, 180 million SDS have been sold, representing about 25% of all shares. Around 60% of these sellers did not possess individual Central Depository (CDP) accounts.

The remaining SDS are set to be transferred from the CPF Board to holders' CDP accounts on November 21. Those with individual CDP accounts will see the transfer, while others will have designated CDP accounts created for them. The SDS scheme, introduced in the 1990s, aimed to encourage CPF members unfamiliar with investing. Parliament approved changes in May to enable these shareholders to manage their shares directly.

Singtel and the CPF Board have been contacting SDS holders, processing over 117,000 walk-in inquiries and receiving more than 15,000 calls at a hotline. The Agency for Integrated Care has visited over 11,000 senior holders who may lack digital skills. Shareholders can keep their shares without any action required before the transfer on November 21.

Those wanting to sell must do so by November 18 via Phillip Securities’ website, SingPost branches, or selected brokers. Trading for the shares will be paused between November 19 and 21 for the transfer. Shareholders can sell their shares after the transfer, with CPF withdrawal conditions waived for sale proceeds. They can receive the proceeds in cash.

Upon transfer, holders with individual CDP accounts will see dividends credited to their linked bank accounts. If they sell their shares, proceeds will be paid based on their broker arrangements. For those with designated CDP accounts, dividends and sale proceeds will be credited to their CPF Ordinary Accounts, or they can receive cash.