ComfortDelGro eyes ASX listing for Australian subsidiary
MAINBOARD-LISTED transport operator ComfortDelGro Corporation C52 announced on Monday that it is looking to list its wholly owned subsidiary, ComfortDelGro Corporation Australia (CDC), on the Australian Securities Exchange (ASX).
In a statement, the company said the initial public offering (IPO), which is planned for the last quarter of 2021, will unlock the value of the group's land transport business assets in Australia.
Australia is ComfortDelGro's single largest overseas investment destination, with a total investment of S$1.17 billion to date.
The group made its maiden foray in Australia 16 years ago through the acquisition of a bus operator in New South Wales. It now operates a fleet of more than 4,400 vehicles - including buses, coaches and ambulances - in six Australian states and territories.
ComfortDelGro's Australian business generated revenue of S$608 million for the year ended Dec 31, 2020.
"CDC is 16 years old and has been a significant contributor to the Australian public transport scene. It has worked hand in hand with the authorities in the various states and territories it operates in to deliver reliable, safe and sustainable bus and coach services," said ComfortDelGro chairman Lim Jit Poh.
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"We believe the time is now right to share this Australian growth story with Australian investors," he added.
Credit Suisse Australia and UBS Australia have been appointed joint lead managers for the IPO.
ComfortDelGro said it will release more details on the proposed listing as and when there are material developments.
Shares of ComfortDelGro closed 3.1 per cent or S$0.05 higher at S$1.67 on Monday, following the announcement.
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