0.68 each. Out of the 168m shares, 153m will be new stocks with the total amount vendor stocks. You will see an over-allotment option of 20m shares. According to the prospectus, the ongoing company is the next largest taxicab operator in Singapore by Fleet Size. In case you have never before seen a TransCab, this is how it appears like. A striking red brighter than what you normally see in Hong Kong but with the same sense of familiarity. This is a simple business, so I shall not have to clarify much. The ongoing company is a taxi operator and acquire and rent out taxis to licensed taxi drivers.
In case you don’t know, Trans-car was owned by a Union Energy and was granted a taxi operation license only in 2003. The founder, Mr. Teo Kiang Ang, is a secondary college dropout and made a living providing gas cylinders. 130m. The rags to riches story! If you want to read his inspiring tale, it can be found here.
- Atleast 40% of the AMC’s networth
- Your Wedding Package
- Inventories of $25 million (including $2 million that are stores and spares of machinery)
- Mouthful of the investment designed for a long life
The Company shows an increasing tendency of income and profitability growth for the last 3 years. Probably it has reached an inflection point where it makes sense for the founders to obtain it listed because the growth will start to “stagnate”. Predicated on the forecast altered EPS of Singapore 6 cents, the forward PER is just about 11.3x for FY2014 and 10.5x for FY2015.
The Company intends to spread not less than 15% from it profit after taxes for FY2014 and dividends of not less than 60% of its PAT for FY2015. However, you might argue that the industry is competitive, it is actually a managed and regulated industry. You will find six operators in Singapore presently.
The variety of licenses to operate are likely to be limited to a few key players and unlikely to increase any more. As LTA is wanting to raise the operating standard, I wouldn’t be amazed to see some loan consolidation going on among the smaller taxi operators as you need economies of size to use a profitable business.
Strong take up rate by Cornerstone investors of about 9.4% of the Company. My initial read of the set of cornerstones are more of the long-only investors (Great Eastern, Prudential), and less of the “subscribe and throw” hedge money. Please, do note that they are not subject to any secure.
Well-integrated verticals. The ongoing company owns their own vehicle workshops, have lower CNG and diesel pump prices for its drivers, and also invests in fuel-efficient taxis. Up to now, the trans cab taxis I took from the airport are the hybrid vehicles and they are usually very “green” vehicles that are fuel efficient. Stable business and high presence of repeating income. While there are extensive taxis plying the highways of Singapore, the income is predictable and repeating in character highly.
People will still use the taxis in good weather or bad and in good times and bad. With Singapore rated as the very best Lonely Planet destination for 2015, the tourism industry will to continue to flourish and this bodes well for the sector likely. The existing owners’ interest continues to be aligned with the new investors. They own about 72% of the business and will likely continue to pay out high dividends. Disrupting technology. I’ve distributed to you my previous experience with Uber in United States. In Singapore, the “car-writing” concept has not been accepted by the government bodies.
Otherwise, it will impact the livelihood of the taxicab providers and companies. Instead of Uber, Grabtaxi is the competent player here. Here is a vintage article on why Grabtaxi is giving Comfort Delgro a run because of its money. Grabtaxi is partially owned by Temasek. Trans-cab should learn how to embrace such taxi applications (rather than creating its own) and worked together with them.