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The Upcoming Trans-cab IPO Is No More

Credit: Neil

After conjuring all that excitement amongst investors, Trans-cab Holdings’ initial public offering has been cancelled.

The taxi operator, which is the second largest taxi service provider in Singapore behind ComfortDelgro Corporation Limited (SGX: C52), revealed in a press statement released this evening that new information related to its insurance premiums had been brought to its attention after the launch of its public offer on 12 November 2014.

Trans-cab “was previously not aware” of an estimated additional insurance premium of S$1.83 million which would be invoiced by its insurer in the future. Given the previously-scheduled close of its public offer at 12 noon tomorrow, the company had decided that there would not be sufficient time to thoroughly evaluate the new information and announce any possible related-changes to its financials.

As such, and on the advice of its advisors, Trans-cab has “deem[ed] it prudent not to proceed with the IPO at this juncture.” The company would think of the next steps it can take after it has completed its full-year audit for its fiscal year ending 31 December 2014 and reviewed the situation.

Investors who had previously applied for the company’s shares would see a full refund of the related-monies they have paid.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Chong Ser Jing doesn’t own shares in any companies mentioned.