Trans-cab Holdings

Trans-cab sets IPO at 68 Singapore cents per share, valuing company at S$456m

Global Offering in respect of 168,000,000 Shares comprising
(i) 65,000,000 Cornerstone Shares;
(ii) 94,200,000 Shares under the Placement (including 6,350,000 Reserved Shares); and
(iii) 8,800,000 Shares under the Public Offer (subject to the Over-allotment Option).

Offering Price: S$0.68 per Share

Timetable
12 November 2014: Opening of the Offering
18 November 2014, 12.00 noon: Close of the Offering
19 November 2014: Balloting of applications, if necessary (in the event of an oversubscription for the Public Offer Shares)
20 November 2014, 9.00 a.m. : Commence trading on a “ready” basis
25 November 2014: Settlement date for all trades done on a “ready” basis

Prospecteus: LINK HERE

Thanks for creating the thread, quite surprising profitable 20% net margin for 2013

Could moderator merge all previous threads on Transcab...

GG

(12-11-2014, 08:45 PM)greengiraffe Wrote: Could moderator merge all previous threads on Transcab...

GG

Done.

Regards
Moderator

http://www.businesstimes.com.sg/companie...68-a-share

Trans-cab launches IPO at S$0.68 a share
By
Kenneth Limkenlim@sph.com.sg@KennethLimBT
BT_20141113_KLTRANSCAB13_1364508.jpg Trans-cab chairman and CEO Teo Kiang Ang (above) says he is keen to expand into vehicle leasing
13 Nov5:50 AM
Singapore

THE phone of Trans-cab Holdings deputy chief executive Jean Teo rang near the end of a media lunch on Wednesday just hours before the taxi operator priced its S$114.2 million initial public offering at the high end of indications.

Her ringtone? None other than Money,

Wow. Anyone subscribing?

subscribing but not for value investing. Rather to sell once there is momentum.

After taking out gains from sales of property, plant and equipment, seems like Transcab earnings did not grow much and stayed at SGD20mil for past 3 years(2013, 2012, 2011). Meanwhile revenue increased in those 3 years, thus profit margins for the taxi operations actually decreased from 15% to approx 10%. NAV per share is around 0.10 and EPS at 0.03 after including IPO shares. Yet, the IPO is priced at 0.68?

(13-11-2014, 08:28 PM)HyperionTree Wrote: After taking out gains from sales of property, plant and equipment, seems like Transcab earnings did not grow much and stayed at SGD20mil for past 3 years(2013, 2012, 2011). Meanwhile revenue increased in those 3 years, thus profit margins for the taxi operations actually decreased from 15% to approx 10%. NAV per share is around 0.10 and EPS at 0.03 after including IPO shares. Yet, the IPO is priced at 0.68?

Agreed. I have adjusted the numbers and the table is as attached.



My understanding regarding the gain on disposal of PPE is that it relates to the disposal of their CNG taxis as they are phasing them out currently. Not sure whether adjusting for such gains on disposal is useful as fleet renewal is part and parcel of their business.

As for the IPO price of 0.68, the adjusted PE would be somewhere above 20, which is probably higher than ComfortDelGro (~20) but lower than SBST (~39) or SMRT (~30). While they are still in the PE range of the listed companies in the transport industry, it may not be a good buy at IPO prices.

(13-11-2014, 11:12 AM)butcher Wrote: Wow. Anyone subscribing?

Will not subscribe as the NAV is < 20 cents and PE is around 20.