Trans-cab aborts IPO, days before listing

Singapore’s second largest taxi-operator Trans-cab has pulled the plug on its initial public offer (IPO) at the eleventh hour, three days before its shares were to begin trading, citing ‘new information related to its insurance premium’.

The company, which had planned to raise $114 million from the float, said it was ‘previously not aware’ of an additional insurance premium of S$114.2 million ($91.3 million) it would have to pay in the future.

“In the interest of investors, the company, on the advice of its professional advisors, deems it prudent not to proceed with the IPO at this juncture,” Trans-cab said in a statement.

The company said the full amount of the application fees would be refunded to those who had applied for its shares.

“As the Company’s fiscal year end (December 31) is approaching, Trans-cab intends to complete its full year audit, review the situation and evaluate its options thereafter,” its statement added.

Trans-cab was selling 168 million shares, equivalent to 25% of the group’s enlarged share capital in its IPO, aiming to raise up to S$114.2 million ($91.3 million) in the process. It had offered the public 8.8 million shares, while the institutional tranche accounted for 94.2 million shares.

The company had already got on board, six cornerstone investors – Eastspring Investments (Singapore), FIL Investment Management (Hong Kong), Havenport Asset Management, JF Asset Management, Lion Global Investors and Maxi – Harvest Group – who had picked up just under 39% of the shares on offer.

It had planned to use proceeds to expand its taxi fleet to 5010 by the end of this fiscal, as compared to 4700 vehicles at present, and also foray into other transport businesses.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.