The median SDS holder now has around 1,360 Singtel SDS — including those bought in 1993 and 1996 at a total cost of around $2,000 and additional loyalty shares equivalent to 40% of their original shareholdings. As at April 1, these SDS are worth around $6,800 — a tidy sum if they are to cash out right away. In addition, over the years, they have also received around $5,000 in cumulative dividends — more than covering the original capital and CPF interest these SDS shareholders would have otherwise received.
Singapore Telecommunications’ 1993 IPO took place amid a multi-year bull run of the regional markets that would last till the Asian Financial Crisis — a period old timers would recall fondly. Apparently, some Singtel shareholders who paid for their shares under this unique Special Discounted Scheme, or SDS, need some memory job that they have some Singtel shares tucked away all these years with the Central Provident Fund (CPF) Board as the trustee.
After lengthy prep work, Singtel, together with the CPF, will transfer the SDS Singtel shares to the mainstream CDP accounts of the shareholders. This means SDS shareholders are freed from prevailing CPF withdrawal rules and trade their Singtel shares like any other shares. To see through a smooth transfer, an extensive public awareness campaign, with support from brokerages, government agencies, call centres and even Singapore Post, is underway.
