The potential relisting of The Straits Trading Co’s (STC) ARA Asset Management in the near term is a “key” catalyst for the company, according to DBS Group Research.

The move, which the brokerage estimates could be worth up to $6.4 billion, could benefit STC “significantly”, it says.

“We continue to believe that ARA’s possible relisting in 2021/2022 will be a key catalyst for STC,” DBS analysts Chung Wei Le and Derek Tan write in a note dated March 4.

In 2017, ARA was delisted from the Singapore Exchange and taken private by a consortium of buyers that includes the company.

STC effectively owns a 20.95% stake in ARA.

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ARA is aiming to achieve an asset under management of $100 billion by 2021 before relisting its shares.

DBS points out that ARA had completed several notable developments in recent years.

They include the acquisitions of majority stakes in LOGOS Group and Venn Partners.

ARA had also increased its stake in Cromwell Property Group to 30.7% as at Dec 31, 2020.

DBS has maintained its “buy” rating for the stock with an unchanged target price of $3.90.

As at 12.40 pm, STC was down 1 cent or 0.4% at $2.81 with 119,100 shares changed hands.