19-11-2014, 07:36 AM
Transcab Vs Japfa, POSH, Speckman... etc
"The professional advice was like this, so what can I do?" Trans-Cab chairman and chief executive Teo Kiang Ang lamented to The Business Times when contacted.
"I feel like I can't face the investors. I hoped everybody could share in our wealth. We will IPO at the correct time," said the Mandarin-speaking businessman who had spent the past week touting the firm's expansion agenda and plans to bid for the sought-after bus route contracts here.
"I didn't know about this until last week when we got the invoice from the insurer. If we wanted to disclose this, we would have had to print everything again to support the prospectus and explain to investors all over again. There's no time. So our adviser said we should withdraw," Mr Teo revealed.
The reactions from the market were fast - some, less furious than others.
"My sense is that if the owner pulled the plug for a mere S$1.8 million in unforeseen claims when he's raising S$100 million, it speaks volumes of his character (compared to) others who may have decided to go ahead with the plan, citing oversight and see the stock collapse post listing," said one investor.
Others were less forgiving. "How can a company find out about extra insurance premium on the day before balloting? How can investors trust someone who can't predict the future of his own business? It's ridiculous," read a posting on a popular stock forum.
"The professional advice was like this, so what can I do?" Trans-Cab chairman and chief executive Teo Kiang Ang lamented to The Business Times when contacted.
"I feel like I can't face the investors. I hoped everybody could share in our wealth. We will IPO at the correct time," said the Mandarin-speaking businessman who had spent the past week touting the firm's expansion agenda and plans to bid for the sought-after bus route contracts here.
"I didn't know about this until last week when we got the invoice from the insurer. If we wanted to disclose this, we would have had to print everything again to support the prospectus and explain to investors all over again. There's no time. So our adviser said we should withdraw," Mr Teo revealed.
The reactions from the market were fast - some, less furious than others.
"My sense is that if the owner pulled the plug for a mere S$1.8 million in unforeseen claims when he's raising S$100 million, it speaks volumes of his character (compared to) others who may have decided to go ahead with the plan, citing oversight and see the stock collapse post listing," said one investor.
Others were less forgiving. "How can a company find out about extra insurance premium on the day before balloting? How can investors trust someone who can't predict the future of his own business? It's ridiculous," read a posting on a popular stock forum.
(17-11-2014, 10:23 PM)greengiraffe Wrote: [ -> ]To be objective, let's take a step back and observe the facts.
Transcab Vs Japfa
Under a caveat emptor regime, Transcab could have gone ahead with the IPO and proclaim innocence that unexpected event arises post IPO date. It, however, chose to scrap the IPO.
In the case of Japfa, nothing was mentioned and one month post IPO, analysts came out of the blackout period writing nice and fanciful report and target prices on Japfa only for the stock to tank post bad results. As if that was not enough, there was malicious rumours that Japfa's livestock got hit by diseases.
Frankly, between the 2, I will go with Transcab. Maybe this down to earth Towkay decided that the best approach is to go with integrity due to his involvement with grassroots, his visibility as his red cabs are plying the streets 24X7, his need to stand alongside with his hardworking cabbies.
On this count, I like him - at least he didn't risk his reputation of being labelled a "con". He will come back just that he has done previously. I am pretty sure Transcab will be better priced in view of this unexpected event in the future.
Like they always say - there is always another day, another chance and the there is always sunshine after the rain.
GG