S'pore taxi operator scraps IPO due to additional insurance charges

A Singapore taxi operator said on Monday that it has scrapped its initial public offering after finding out that it faced additional insurance charges.

Trans-cab Holdings has cancelled plans to list its shares on the Singapore Exchange, less than a week after the IPO was launched, local media reported.

The company said it was previously not aware that there was an additional insurance premium of 1.83 million Singapore dollars (1. 41 million U.S. dollars), which is "to be invoiced by its insurer in the future." The premium adjustment by the insurer is based on cumulative accident claims against Trans-cab's taxi fleet.

The company said it needed time to evaluate the new information.

As the IPO was scheduled to close at noon on Tuesday, the company felt it was best not to proceed with the IPO.

Trans-cab had a profit after tax of 36.3 million Singapore dollars (27.9 million U.S. dollars) last year.