More asset sales seen as firms seek higher share valuations: DBS

Singtel alone could realise up to $23b through Airtel stake sales and a data-centre IPO. 

Singapore-listed companies are expected to pursue more asset sales, listings, and restructuring as recent disposals helped validate valuations not fully reflected in their share prices.

Singtel alone could realise $21b to $23b through further stake sales and a potential data-centre listing, equivalent to 23% to 25% of its sum-of-the-parts valuation, according to a DBS Group Research report.

The estimate includes $13b to $14b from a further 6% to 7% sell-down of its Bharti Airtel stake and $4b to $5b from a possible listing of its data-centre business.

DBS said conglomerates and property companies had historically traded below their book values or revalued net asset values because investors were uncertain whether those valuations would be realised.

However, this began to change as groups sold assets at or above book value and used divestment proceeds to reduce debt, repurchase shares, and pay higher dividends.

“Investors reward progress, not promises,” the bank said, noting that completed transactions generally led to faster re-ratings than broad strategic plans.

It added that investors had begun factoring in future disposals and capital returns before transactions were completed as confidence in management improved.

Meanwhile, the Equity Market Development Programme, launched in February 2025, encouraged investors to revisit companies trading at large valuation discounts, although DBS said the initiative itself did not create the underlying asset value. 

The programme was expanded to $6.5b from $5b in February 2026 to allow more asset managers investing substantially in Singapore equities to participate. 

The report cited Keppel as an example of a company that had progressed from announcing a transformation to completing asset sales and returning capital to shareholders.

The group had monetised $14.9b of assets since October 2020, whilst another $13.7b of non-core assets remained available for disposal.

Potential transactions identified include the sale of M1 for around $1.1b, the injection of Keppel DC Singapore 9 into Keppel DC REIT for $600m to $700m, and the disposal of legacy offshore and marine assets valued at about $3.7b.

UOL, meanwhile, could raise $4.6b to $7.8b in gross proceeds by securitising its office or hotel portfolio. Selling a 50% stake could generate $2.3b to $3.9b.

The group is also expected to provide an update on the Marina Square redevelopment in the third quarter. DBS’ base case assumes a 30% increase in gross floor area and a gross development value of $4.8b, compared with the property’s current valuation of about $1b.

DBS also identified City Developments, CapitaLand Investment, Sembcorp Industries, and Jardine Matheson as companies that could pursue further divestments, listings, or restructuring.

The bank divided the process into three stages: management sets out its plans, completes the transactions, and then passes the benefits to shareholders through dividends, buybacks, debt reduction, or higher returns.

“A credible first asset sale may signal the start of a multi-year catalyst pipeline,” DBS said.