Singapore's second largest taxi operator to go public

The Straits Times reported that TransCab, Singapore's second largest taxi operator, has lodged its preliminary prospectus ahead of a public listing.

It has appointed DBS Bank as the principal banker and receiving bank for the exercise, which offers 153 million new shares and 15 million vendor shares. Out of those, 65 million have been assigned to six cornerstone investors.

In its prospectus lodged with the Monetary Authority of Singapore (MAS) yesterday, TransCab said it has received its eligibility-to-list from the Singapore Exchange.

TransCab's directors said that they intend to pay dividends of no less than 15 percent of its after-tax profit for the 2014 financial year, and no less than 60 percent of after-tax profit for the 2015 financial year.

Its offer price will be made known soon, but sources said it is likely to be around 68 cents, with 10 percent to 15 percent of the float set aside as placement shares.