SINGAPORE – About 163,000 people, or 27 per cent of all Singtel Special Discounted Shares (SDS) holders, have sold their shares as at Aug 31.
This is up from about 83,000 holders, or 13 per cent of the total, who had sold their shares as at April 30.
Around 180 million Singtel SDS have been sold in total, accounting for about 25 per cent of all such shares, said Singtel in an announcement on Sept 17. Of those who sold their shares, more than 60 per cent did not have individual Central Depository (CDP) accounts.
The sales come ahead of the Nov 21 transfer of the remaining SDS from the CPF Board to holders’ CDP accounts. Those with individual CDP accounts will have their shares transferred there, while designated CDP accounts will be created for those without one.
The SDS scheme was introduced in the 1990s to encourage CPF members to participate in share ownership at a time when many were unfamiliar with investing.
Parliament approved changes in May to end the CPF Board’s longstanding role as trustee of the scheme, allowing shareholders who bought the discounted Singtel shares in 1993 and 1996 to manage them directly.
Singtel and the CPF Board said they have been reaching out to SDS holders ahead of the transfer, including through hardcopy notifications sent in April.
More than 117,000 walk-in inquiries and transactions have been processed at 36 SingPost branches islandwide as at Aug 31, while a dedicated SDS hotline has received more than 15,000 calls.
The Agency for Integrated Care has also conducted house visits to more than 11,000 older SDS holders who may not be digitally savvy.
SDS holders who want to keep their shares do not need to take any action before the Nov 21 transfer.
Those who want to sell their shares before the transfer can do so until Nov 18 through Phillip Securities’ website, SingPost branches or selected Singapore Exchange retail brokers. Trading for the shares will be temporarily paused between Nov 19 and Nov 21 to facilitate the transfer.
They can also continue to sell their shares after the transfer, with CPF withdrawal conditions waived for the sale proceeds. Holders can choose to receive the proceeds in cash.
After the transfer, holders with individual CDP accounts will have dividends credited to the bank accounts linked to their CDP accounts. If they sell their shares, the proceeds will be paid based on their arrangements with their brokers.
For those whose shares are held in designated CDP accounts, dividends and sale proceeds will be credited to their CPF Ordinary Accounts. They can also choose to receive their sale proceeds in cash.
