Singtel Weighs Nasdaq-SGX Dual Listing for Nxera Data Centre Unit

Dual-Listing Option on the Table

Singapore Telecommunications is evaluating a dual listing on Nasdaq and the Singapore Exchange for Nxera, its data centre subsidiary, alongside plans for a separate data centre real estate investment trust. The telco disclosed both options during its annual general meeting on July 29, though executives emphasized that neither has advanced beyond exploratory discussions.

Group CEO Yuen Kuan Moon told approximately 900 attendees at the Sands Expo and Convention Centre that no decisions have been made regarding scale, structure, or timing for either listing. The telco first mentioned the REIT concept in May during an earnings briefing, when CFO Arthur Lang described the structure as a way to enable financial flexibility and strengthen returns.

Both moves align with Singtel's Singtel28 strategy, which centers on capital recycling to unlock value for shareholders. The company has been actively reshaping its portfolio, including the pending acquisition of an 82 percent stake in ST Telemedia Global Data Centres alongside a KKR-led consortium. Singtel will hold 25 percent of that entity once the transaction closes in the next two months, according to Yuen.

Capacity Expansion Across Southeast Asia

Nxera's footprint is expanding rapidly. By the end of 2026, the unit's data centre capacity across Singapore, Malaysia, Thailand, and Indonesia will more than double to exceed 200 megawatts. Yuen projected that the data centre business will generate more than S$300 million in earnings before interest, tax, depreciation, and amortization by 2030.

The CEO underscored disciplined investment criteria. Singtel commits to new data centre builds only when customers agree to absorb at least 30 to 50 percent of capacity before construction begins. That threshold aims to reduce exposure to speculative capacity additions in a market where hyperscale demand can shift quickly.

KPMG Reappointment Draws Shareholder Questions

The AGM also addressed Singtel's decision to reappoint KPMG as auditor, a resolution that passed with 99.79 percent of votes despite recent controversy. KPMG Australia staff had shared confidential information about Optus, Singtel's Australian subsidiary, with colleagues bidding for a contract with rival Telstra. KPMG Australia acknowledged the lapse and sanctioned the employees involved, and the three individuals directly connected to the incident no longer work on the Optus account.

John Arthur, chairman of the Optus board, defended the reappointment. He argued that changing auditors now would place additional burden on Optus management, which is midway through a multi-year transformation following a 2025 network outage that left customers unable to reach emergency services. An independent review linked two fatalities to failed emergency calls during that incident.

Audit committee chairman Gautam Banerjee said Singtel will continue monitoring KPMG's performance in Singapore and Australia, with a decision on whether to conduct a full auditor review or make a change expected in the future.

SingPost Stake and Digital Bank Update

Shareholders pressed for updates on other portfolio holdings. Yuen reiterated support for Singapore Post, in which Singtel holds a 22 percent stake, noting that the postal company's ongoing transformation could lift its valuation above current levels.

On GXS, the digital banking venture, CFO Lang acknowledged that the Singapore operation faces intense competition. GXS Bank reported a S$132.1 million loss in fiscal 2025, while the broader GXS business, including the Malaysian unit GXBank, posted a S$208.1 million loss. The Singapore unit has turned positive at the EBITDA level and is expected to reach net profitability by the end of 2026 or early 2027. Lang forecast group-level profitability for GXS by fiscal 2028.

All 11 resolutions at the AGM, including the reappointment of chairman Lee Theng Kiat, were approved. Singtel shares closed 1.8 percent higher at S$4.61 on July 29.

The telco's exploration of listing options for Nxera reflects broader momentum in Asia's data centre sector, where infrastructure providers are tapping public markets to fund expansion driven by cloud computing and artificial intelligence workloads. Whether Singtel opts for a U.S. listing, a local REIT, or both will hinge on investor appetite and the company's assessment of valuation and liquidity trade-offs in each market.