<article>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’.</article>

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.
&#8220;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,&#8221; 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.

Trans-cab aborts IPO, days before listing

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Trans-cab aborts IPO, days before listing

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