Trans-cab sets IPO at 68 Singapore cents per share, valuing company at S$456m
SINGAPORE taxi operator Trans-cab Holdings has priced its initial public offering (IPO) at the high end of indications, registering its S$114.2 million stock sale at 68 Singapore cents apiece.
The talk was of a price of between 65 and 68 Singapore cents per share. The IPO price will value the company at S$456 million upon listing.
Issue manager DBS has an over-allotment option for a further 20 million shares.
The offering will close at noon on Nov 18, with listing targeted for Nov 20.
The IPO price is about 12.6 times Trans-cab's 2013 earnings per share of 5.4 Singapore cents, based on its post-IPO share capital of about 670.8 million shares. On a pro-forma basis, the IPO price is 13.9 times of 2013's earnings per share of 4.9 Singapore cents.
The company reported a net profit of S$19.9 million, or S$18.2 million on a pro-forma basis, for the half year ended June 2014, and has committed to paying at least 15 per cent of 2014 post-tax profit and at least 60 per cent of 2015 post-tax profit as dividends.
The offer comprises 153 million new shares and 15 million shares sold by Trans-cab chairman and chief executive Teo Kiang Ang and by existing shareholder Goh Seow Chai.
The bookrunners have allocated 65 million shares to cornerstone investors including funds run by Eastspring Investments, Fidelity and Lion Global Investors. Another 94.2 million shares, including 6.35 million reserved for staff and associates, form the placement tranche. A further 8.8 million shares, or 5.2 per cent of the total offering, are allocated for the public.
Net proceeds of about S$97.8 million will be used to fund expansion of taxi operations, diversification into other transport businesses, working capital, investment in technology and construction of new headquarters.
Trans-cab operates Singapore's second-largest fleet of taxis, with 4,686 vehicles plying the streets.
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