Singtel explores Nasdaq-SGX dual listing for data centre arm Nxera, local data centre Reit

[SINGAPORE] Singtel on Wednesday (Jul 29) said that it was considering a dual listing on Nasdaq and the Singapore Exchange (SGX) for its data centre arm Nxera, as well as listing a data centre real estate investment trust (Reit).

However, both options remain at an exploratory level, with no final decision on scale, date and structure, the group said during its annual general meeting (AGM) at the Sands Expo and Convention Centre.

Singtel first floated the idea of a Reit listing in May during an earnings call.

At the time, group chief financial officer Arthur Lang said that such a move “enables financial flexibility… strengthens returns and supports long-term value creation”.

This comes as the telco expands its capital recycling model to increase shareholder value, as part of its “Singtel28” plan.

During the AGM, Singtel group CEO Yuen Kuan Moon did not rule out a Nasdaq-SGX dual listing of Nxera.

“We will consider (a Nasdaq listing), and I think we are just in the exploratory stage,” he told the roughly 900 people at the event. “No decision has been made yet. So we will see the evaluation, and then we will... come back in due time to make a decision.”

By the end of 2026, Nxera’s data centre capacity across Singapore, Malaysia, Thailand and Indonesia will more than double to over 200 megawatts.

Yuen expects Singtel’s data centre business to grow to more than S$300 million in earnings before interest, tax, depreciation and amortisation by 2030.

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Nonetheless, he reaffirmed the group’s discipline in its in data investments.

“We will not commit to building (data centres) unless we see there are actually real customers, or customers who are willing to take at least 30 to 50 per cent of our capacity before we even embark on building a new data centre,” he said.

Auditor KPMG reappointed despite scrutiny

Singtel’s reappointment of KPMG as its auditor was a topic of contention among shareholders.

This was despite the discovery that KPMG Australia staff had shared sensitive information regarding Optus, Singtel’s Australian unit, with another team from the audit firm. That team was bidding for a contract with Telstra, a rival communications player.

KPMG Australia has since acknowledged that client information was inappropriately shared, and sanctioned the employees involved.

The three individuals directly involved are no longer working on the Optus account, noted John Arthur, chairman of the Optus board, at the AGM.

Still, he defended the decision to reappoint KPMG as auditor.

“This is not the right time to undertake a change (in auditor),” he said, adding that any replacement would increase the burden on Optus’ management.

Optus management is undergoing a multi-year transformation following a major “Triple Zero” outage in 2025 – in which customers were unable to call emergency services in Australia.

An independent review linked two fatalities to emergency calls that could not connect during the outage.

Singtel audit committee chairman Gautam Banerjee said that the group will keep monitoring KPMG’s performance in both Singapore and Australia.

He added that Singtel “will have made a decision as to whether we will continue with them, or whether we will have a full review and change auditors”.

The resolution to reappoint KPMG received 99.79 per cent of the votes cast at the AGM.

STT GDC deal to close soon

In February, Singtel and a KKR-led consortium agreed to acquire an 82 per cent stake in data centre operator ST Telemedia Global Data Centres (STT GDC), with Singtel eventually holding 25 per cent of the entity.

“The transaction is expected to close in the next two months, and we will have more to share on the strategic options available (then),” said Yuen.

Besides the STT GDC acquisition, the telco's other project and company investments include a 22 per cent equity stake in Singapore Post (SingPost).

Responding to shareholder queries, Yuen reiterated the group’s support for SingPost as the postal services company continues its multi-year transformation.

Singtel believes “there’s definitely value in SingPost”, he said, adding that the company’s value “may be even higher than (what it is) today” after the transformation.

Another shareholder asked about the group’s plans for digital bank GXS, which Yuen said is “not forgotten”.

Lang – who also sits on the board of GXS – said that while the digital bank’s Indonesia and Malaysia units are performing well, the Singapore business has been particularly challenging.

The Singapore unit, GXS Bank, reported a S$132.1 million loss in the 2025 financial year. The larger business, comprising both GXS Bank and the Malaysian unit GXBank, reported a S$208.1 million loss.

“It is challenging primarily because of the competitive landscape here in Singapore,” Lang noted.

Nonetheless, he highlighted that the Singapore business has turned positive on an earnings before interest, tax, depreciation and amortisation level.

It is expected to move into the black on a net profit after tax basis by the end of 2026 or the start of 2027.

Lang expects GXS to become profitable on the group level by FY2028.

All 11 resolutions, including the reappointment of chairman Lee Theng Kiat, were passed during the AGM.

Shares of Singtel finished Wednesday 1.8 per cent or S$0.08 higher at S$4.61.