ComfortDelGro (CDG) announced, on Aug 16, that it is pursuing an initial public offering (IPO) on the Australian Securities Exchange (ASX) for its wholly-owned subsidiary, ComfortDelGro Corporation Australia (CDC).
The IPO is planned for the last quarter of 2021.
The move will unlock the value of the group’s “significant land transport business assets” in Australia.
The move to IPO on the ASX comes after a two-week non-deal roadshow in June, which sought to introduce CDC to investors.
CDC first began operations in Australia 16 years ago through the acquisition of the businesses of New South Wales (NSW) bus operator, Bosnjak Holdings.
Today, the group operates in some of Australia’s fastest growing public transport markets including Sydney, Melbourne, Brisbane and Darwin, with a total fleet of over 4,400 vehicles including buses, coaches and ambulances.
See also: ComfortDelGro buys buses and depots in Queensland, Australia for $17.5 mil
Australia is now CDG’s single largest overseas investment destination with a total investment of $1.17 billion to-date.
CDG’s Australian businesses generated revenue of $608 million for the year ended Dec 31, 2020.
“CDC is 16 years old and has been a significant contributor to the Australian public transport scene. It has worked hand in hand with the authorities in various states and territories it operates in to deliver reliable, safe and sustainable bus and coach services,” says CDG chairman Lim Jit Poh.
“We believe the time is now right to share this Australian growth story with Australian investors,” he adds.
Credit Suisse Australia and UBS Australia were the joint lead managers for the IPO.
As at 12.50pm, shares in CDG are trading 1 cent higher or 0.6% up at $1.63.
Photo: ComfortDelGro
