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Trans-Cab weighs IPO plans: Bloomberg
Posted on Tuesday, 10 September 2019 06:29
Singaporean taxi group Trans-Cab Services is planning to revive a stock market flotation that could raise around SGD 200.00 million (USD 144.68 million), people with knowledge of the matter told Bloomberg.

The business, according to the sources, is aiming for a public listing in the first quarter of 2020 on the Catalist board as the country is in preparations to tighten regulations on ride-hailing rivals.

Trans-Cab, which competes with Uber and Grab, had planned to raise SGD 100.00 million through an initial public offering (IPO) back in 2014, though called off the process due to its insurance premiums.

Insiders familiar with the situation told Bloomberg deliberations are at an early stage and the size and timing of a flotation could change.

Sources declined to be identified as the information is still private, while Trans-Cab did not respond to the news provider’s email requests and calls for comment went unanswered.

Founded in 2003, the company’s core operations involve managing taxis in Singapore, where it is the second-largest player in the market, according to its website.

Trans-Cab has over 3,000 vehicles in operation, behind leader ComfortDelGro comma with 11,467 vehicles, according to data from the Land Transport Authority, as cited by Bloomberg.

In addition, Singapore is preparing to license operators such as Grab and Gojek from June 2020, in a bid to bring safety-related rules for the service providers to better connect commuters and drivers.

The ride-hailing sector has seen two major IPOs take place this year, the largest being the USD 8.10 billion listing by Uber Technologies, while Lyft also completed a USD 2.34 billion flotation.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been nine IPOs of Singapore-based companies announced or completed in 2019 to date.

The largest of these involves Eagle Hospitality Trust, which raised USD 452.84 million in May.

Other companies included ARA US Hospital Trust, Prime US Real Estate Investment Trust, Fortress Minerals and ST Group Food Industries Holding.

© Zephus Ltd