Singapore's second-largest taxi operator Trans-cab said on Monday it was scrapping its planned initial public offering (IPO) three days before its shares were due to start trading.
The company, which had been looking to raise around S$114.2 million ($88 million), said it was cancelling the offering due to new information relating to its insurance premium flagged by its insurer soon after launching its public offer on Nov. 12.
Trans-cab said it had not been aware it was likely to face an additional insurance premium of S$1.83 million due to cumulative accident claims made against its fleet of taxis.
It said that given its offering was due to close tomorrow, it did not have time to properly evaluate this new information, so had decided not to proceed with the listing.
"In the interest of investors, the company, on the advice of its professional advisors, deems it prudent not to proceed with the IPO at this juncture," Trans-cab said in a statement.
It added it would wait until after the audit of its accounts for the fiscal year ending Dec. 31 before deciding on its next course of action.
Trans-cab, which operates a fleet of just under 5,000 taxis, was planning to float around 25 percent of its share capital meaning it was expected to have a market value of around S$456 million.
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