SINGAPORE: Singaporeans who hold Singtel’s special discounted shares in their Central Provident Fund (CPF) accounts can withdraw the sales proceeds in cash from Wednesday (Apr 8) if they choose to sell them.
These shares will be transferred from their CPF accounts to their Central Depository (CDP) accounts in November this year.
What are these special discounted shares and what should you do if you have them? Here’s what you need to know.
What are the SDS shares and who has them?
The special discounted shares scheme was introduced in October 1993, when Singtel became a public company. Through the scheme, Singaporeans who were CPF members could buy Singtel shares at a discounted price during its initial public offering in 1993 and again in 1996.
The 1993 shares were also known as ST “A” shares, while those sold in 1996 were known as ST2 shares.
The scheme was introduced as part of the government’s plans to make Singapore a share-owning society, giving Singaporeans a greater stake in the country. At the time, the CPF Board was appointed as the trustee.
Singtel is the first and only company that sold shares through this scheme, with more than a million Singaporeans buying shares at the time. Those who held on to their discounted Singtel shares were entitled to loyalty shares, which means they also received additional shares over time.
Now, almost 615,000 Singaporeans hold these shares, said Singtel and the CPF Board.
Today, the youngest holders of special discounted shares are above 50 years old and the median shareholder has about 1,360 shares.
They would have bought shares in 1993 and 1996 for about S$2,000, and received additional loyalty shares equivalent to 40 per cent of their original shareholdings, said the Singtel and the CPF Board.
