DBS Group Holdings share price (SGX:D05) in $10 billion IPO?

LIFETIME MEMBERSHIP It could be an event that will move Heaven and Earth, at least for DBS Group Holdings share price (SGX:D05). In a bombshell revelation, DBS CEO Piyush Gupta mentioned in the transcript of DBS second quarter 2021 conference call that the bank is looking at unlocking one of its assets, Remit, through IPO for an eye-popping $10 billion. If the plan does materialize, it will be one of the largest IPOs to grace the Singapore stock market in recent years.

In 2019, I wrote that DBS Group Holdings share price (SGX: D05) will hit $50. Though that day has not arrived, I do think that it is only a matter of time that DBS Group Holdings share price (SGX: D05) reaches this incredible milestone. On 10 August 2021, DBS Group Holdings share price (SGX: D05) hit a record $31.70 after Monetary Authority of Singapore (MAS) lifted the dividend restrictions on local banks. On the basis of its current run, it is not impossible for the counter to hit $40 by year-end if the bank continues to deliver good financial results and lists its digital assets.

Question now is when will CEO Piyush Gupta set fire on DBS Group Holdings share price (SGX: D05) by unleashing the Remit $10 billion IPO? It is not CEO Piyush Gupta’s style to talk up prospect of his company nor do I think that he made that comment out of jest. Most Singaporeans know that Piyush Gupta puts his money where his mouth is. His purchase of 200,000 DBS shares for $2.8 million in February 2016 was driven by his conviction that the shares were grossly undervalued. Indeed, his move was later vindicated as the DBS Group Holdings share price (SGX: D05) climbed by 100% within two years.

DBS’ plan to list Remit comes at a time when Temasek, MAS, EDB and SGX announced initiatives to list high growth technology companies in the local bourse, which has seen a dearth of listings in recent years. Ironically, the move to woo homegrown companies came after a number of Singaporean companies like Grab and Razer chose to list in overseas markets. Against this backdrop, my view is that DBS would jump on the bandwagon and may list Remit within the next six months, thereby turbocharging DBS Group Holdings share price (SGX: D05) to high heavens.

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Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in DBS Group Holdings share before. Whether DBS Group Holdings share price (SGX: D05) will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

Catalyst for DBS Group Holdings share price (SGX: D05)

On its day, DBS Group Holdings share price (SGX: D05) can be unbeatable. The imperious form of DBS Group Holdings share price (SGX: D05) is certainly impressive given that the bank has not conducted any shares buybacks in 2021 at all. This is unlike OCBC and UOB, which have been buying back their shares aggressively recently.

DBS stock is popular among investors because of the bank’s strong dividend payouts record. Assuming Remit is really listed in SGX, that would unlock much value for investors, thereby pushing DBS Group Holdings share price (SGX: D05) to new heights. To put the icing on the cake, there may even be a special dividend. After all, Gupta estimated that Remit could be worth up to $10 billion. Given that the number of DBS outstanding shares is 2.57 billion, the dividend payout could be a mind-boggling [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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