ComfortDelGro seeks Australia IPO for Australian subsidiary

A bus from the Forest Coach Lines, which operates in Northern Sydney and regional New South Wales, in Australia. Photo provided by ComfortDelGro.A bus from the Forest Coach Lines, which operates in Northern Sydney and regional New South Wales, in Australia. Photo provided by ComfortDelGro.

ComfortDelGro is seeking an initial public offering (IPO) on the Australian Securities Exchange (ASX) for its wholly owned subsidiary ComfortDelGro Corp. Australia (CDC), the taxi, bus and fleet operator said in a filing to SGX mid-day Monday.

“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 the various states and territories it operates in to deliver reliable, safe and sustainable bus and coach services. We believe the time is now right to share this Australian growth story with Australian investors,” Lim Jit Poh, ComfortDelGro’s chairman, said in the statement.

The deal, which will unlock the value of ComfortDelGro’s significant land-transport business in the country, followed a two-week non-deal roadshow in June to introduce CDC to investors, the filing said.

Credit Suisse Australia and UBS Australia are joint lead managers for the IPO, which is planned for the fourth quarter of this year.

The IPO will be subject to prevailing market conditions and approvals.

CDC operates in Australian markets including Sydney, Melbourne, Brisbane and Darwin, with a fleet of more than 4,400 vehicles, including buses coaches and ambulances; for 2020, the Australian businesses posted revenue of S$608 million.

ComfortDelGro has invested S$1.17 billion in Australia so far, making it the group’s largest overseas investment destination, the filing said.

SBS Transit and VICOM, both listed on SGX, are also held by ComfortDelGro; the company operates in seven countries, with a global fleet of more than 40,000 buses, taxis and rental vehicles as well as 83km of light and heavy rail networks in Singapore.