It was supposed to be one of the more high-profile IPO (initial public offering) in Singapore this year. However taxi operator Trans-Cab’s IPO has now been called off.
Why the cancellation you asked? Well, Transcab decided to cancel the IPO after discovering that it is liable to pay an additional insurance premium worth $1.83m! According to the company, Trans-cab revealed that its insurer has rendered the amount as a “premium adjustment” based on cumulative accident claims against the company's taxi fleet.
Well, that’s great timing isn’t it? Just days after Transcab announced it’s intention to float on the Singapore Exchange (SGX), it’s insurance company announced that they will need Transcab to pay more for their vehicle insurance.
Yes, I’m sure they will say the timing is nothing but a coincidence but let us be serious here; it is not! So I have to wonder just how legal this is. Can an insurance company just announce an “adjustment” to an insurance premium for no reason?
If the answer is yes, then I think we can forget about any transport company being listed in SGX. No transport company in the world in their right mind will list here.