Singtel Raises S$1 Billion, Moves Closer To S$9 Billion Asset Target

Singapore Telecommunications Ltd. (SGAPY) raised about S$1 billion by selling a 2.8% stake in Gulf Development, Thailand's largest energy company, giving the telecom group more firepower as it looks to turn past investments into cash, support growth, and return more capital to shareholders. The private placement to institutional investors is expected to deliver about S$140 million in gains, while Singtel will still own a 4.95% stake in Gulf worth S$1.8 billion after the deal.

This could be an important step in Singtel's broader asset-recycling strategy. Since 2024, the company has raised S$6.8 billion under the program, bringing it closer to its S$9 billion medium-term target. Group Chief Financial Officer Arthur Lang said the sale gives Singtel meaningful capacity to fund and sustain its value realization dividend, value realization share buyback, and digital infrastructure investments.

For investors, the capital-return angle is possibly the key signal. Singtel has already deployed about 34% of its planned S$2 billion buyback program, spending roughly S$681 million to repurchase and cancel shares. The company also recently proposed an annual dividend of 18.5 Singapore cents per share, which would be its highest on record. Singtel shares fell as much as 1.8% in Singapore trading Tuesday, while Gulf slipped 1.6% in Bangkok.