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Trans-cab hastily halts IPO after unearthing massive insurance premium hike
The offer should have closed today.
A week after launching its initial public offering, local taxi operator Trans-cab Holdings yesterday terminated its IPO after discovering that it is liable to pay an additional insurance premium worth $1.83m.
The IPO was scheduled to close at noon today, but Trans-cab yesterday revealed that its insurer has rendered a premium adjustment based on cumulative accident claims against the company's taxi fleet.
Trans-cab has reiterated that the amount is a preliminary estimate provided by the insurer and has not yet been reviewed and accepted by the company.
“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. As the Company’s fiscal year end at December 31 is approaching, Trans-cab intends to complete its full year audit, review the situation and evaluate its options thereafter,” noted Trans-cab in a statement.
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