Trans-cab stays mum on reports of 'imminent IPO'

Mr. Teo Kiang Ang (above), managing director of Trans-Cab. -- PHOTO: ST FILE
Mr. Teo Kiang Ang (above), managing director of Trans-Cab. -- PHOTO: ST FILE

SINGAPORE - Trans-cab Services, the country's second-biggest taxi operator, has not denied media reports of an imminent initial public offering (IPO), choosing instead to stay mum about the news.

On Monday, Bloomberg reported that Trans-cab was preparing for an IPO that could raise at least $100 million, with plans to sell shares by the end of the year.

"At the moment we have no comment. We don't have any idea where these reports came from," Trans-cab's finance manager Lim Jin Hong told The Straits Times on Tuesday.

Channel News Asia earlier on Monday quoted the Trans-cab's managing director Teo Kiang Ang as saying that the company has always had plans to list but he did not know when that would be.

Bloomberg's report also quoted sources with knowledge of the matter as saying that the company plans to use funding from the IPO to renew its fleet, and build a new head office.

Asked if Trans-Cab had spoken to banks to finance its expansion plans, Mr Lim replied: "All the while, we have had financial istitutions to support the purchasing of taxis."

Mr Lim emphasised that it is business as usual at Trans-Cab, with the company undertaking its "usual routine purchase of taxis - because every year we scrap some".

In Singapore, taxis can only be used for eight years after registration. Most recently, TransCab scrapped all of its Toyota Crown taxis in September, said Mr Lim.

Trans-cab has 4,650 taxis, including 99 Mercedes taxis, trailing only ComfortDelGro's fleet of 12,557 Singapore taxis.