After all the hype and the interests in its growth Trans-cab scraps IPO after finding out it faced additional insurance charges amounting to S$1.83 million.
Taxi operator Trans-cab Holdings has cancelled plans to list its shares on the Singapore Exchange, less than a week after it launched its initial public offering (IPO).
Trans-cab, which operates Singapore's second largest taxi fleet, decided to scrap the IPO after finding out it faced additional insurance charges amounting to S$1.83 million.
"The company was previously not aware that there was an additional insurance premium of S$1.83 million (inclusive of GST), which is to be invoiced by its insurer in the future," Trans-cab said in a statement on Monday (Nov 17). The premium adjustment by the insurer is based on cumulative accident claims against Trans-cab's taxi fleet.
Trans-cab said it needed time to evaluate the new information. As the IPO was scheduled to close at noon on Tuesday (Nov 18), the company felt it was best not to proceed with the IPO.
Trans-cab made a profit after tax of S$36.3 million for the financial year ended Dec 31, 2013.
Source: Channel News Asia
Overall
Did you sign up? Its not uncommon for IPO to withdraw before their launch after certain factors but pulling the plug due to insurance premium feels kinda odd. In any cases we will just have to wait and see if there is any news after this.
2 comments
Really great article it will be informative to me so check here car accident excess
ReplyMany policy holders struggle to understand what an insurance excess and how to Claim your Excess They do not understand why they have to pay this and especially how they can get their hands on these funds if they were not to blame for the accident resulting in the insurance claim.
Replyhttps://www.claimyexcess.com/why-claim-excess
Post a Comment