Singtel Jumps as Much as 11% on Digital Bank Win With Grab

Singapore Telecommunications Ltd. shares soared after its consortium with Grab Holdings Inc. was awarded a license to run a digital full bank in Singapore.

The telecom operator rose as much as 11%, the most since October 2008. Digital full banks will be allowed to take deposits and provide banking services to both retail and corporate customers.

The Grab-Singtel venture will hire 200 people before the virtual lender’s launch in early 2022. Singtel provides mobile, fiber broadband and TV services, and owns 40% of the partnership. U.S.-listed Sea Ltd. was the second entity to be awarded a full bank license. Shares rose 8.3% on Friday, the biggest gain in about four months.

Meanwhile, an Ant Group Co.-led entity and a venture involving China’s Greenland Financial Holdings Group Co. won wholesale bank licenses. Shares of iFast Corp. plunged as much as 34%, the most on record, after it failed to win a license. Hong Kong-listed Razer Inc. -- another contender -- fell as much as 12%.

©2020 Bloomberg L.P.

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