Indonesia's biggest taxi firm picks banks for S$310m IPO: Sources

JAKARTA (REUTERS) - Blue Bird Group, Indonesia's biggest taxi firm, has picked Credit Suisse AG and UBS AG to lead its initial public offering, aiming to raise at least US$250 million (S$310 million) this year, sources with direct knowledge of the matter said.

The Jakarta-based group's IPO is one of the most anticipated equity offerings in Southeast Asia's largest economy, where demand for consumer stocks pushed the local index to a record high this week.

Blue Bird is hoping to sell a stake of between 20 per cent and 40 per cent around the middle of this year, said one of the sources, adding that the company had recorded compound annual growth rates of above 20 per cent for the past 30 years.

It is aiming at a US$1 billion valuation for its businesses, which range from taxis to supply-chain management, said another source who declined to be identified because the talks were not public.

A lack of public transportation across Indonesia means car and motorbike taxis are in high demand. The Blue Bird brand is one of the more highly regarded among the plethora of taxi companies operating in the archipelago of about 240 million people.

Blue Bird, established in 1972 by Mr Mutiara Djokosoetono, currently operates 21,000 taxis, according to its website, and sources said it was planning to add about 10,000 more this year.

Blue Bird declined requests for comment.