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Taxi Operator Blue Bird Said to Seek $600 Million IPO

Taxi cabs wait for passengers in Jakarta. Blue Bird Group, the biggest taxi operator in Indonesia, has grown from 25 taxis in 1972 to around 26,000 today and serves more than 8.5 million passengers per month across the country, according to its website. Photographer: Dimas Ardian/Bloomberg
Taxi cabs wait for passengers in Jakarta. Blue Bird Group, the biggest taxi operator in Indonesia, has grown from 25 taxis in 1972 to around 26,000 today and serves more than 8.5 million passengers per month across the country, according to its website. Photographer: Dimas Ardian/Bloomberg

July 26 (Bloomberg) -- Blue Bird Group, the biggest taxi operator in Indonesia, plans to seek at least $600 million in an initial public offering in the country, three people with knowledge of the matter said.

The company, based in Jakarta, may start the sale in the fourth quarter, said the people, who asked not to be identified because the information is private. The fundraising target could be expanded to as much as $800 million, one person said.

At $600 million, the IPO would be Indonesia’s largest since PT Indofood CBP, a food producer, raised $696 million in October 2010, data compiled by Bloomberg show. With the potential for rising wealth and consumption luring investors to Southeast Asia’s largest economy, companies have raised $3.7 billion in share sales in Jakarta this year, more than twice the amount of the year-earlier period, the data show.

Credit Suisse Group AG, Rothschild and UBS AG are among banks arranging the IPO, the people said.

Blue Bird spokesman Teguh Wijayanto did not answer two calls to his mobile phone seeking comment. Wijayanto said in November that Blue Bird may sell 20 percent to 40 percent of the company in an IPO this year, without specifying a target for proceeds from the sale.

Blue Bird has grown from 25 taxis in 1972 to around 26,000 today and serves more than 8.5 million passengers per month across the country, according to its website. Its name was taken from a European fairy tale about a girl and a blue bird who worked tirelessly to find happinesss, the website says.

Another Indonesian taxi operator, PT Express Transindo Utama Tbk, raised 588.7 billion rupiah ($57 million) in an IPO in October 2012. The stock has surged 74 percent this year.

In the biggest Indonesian share sale this year, PT Matahari Department Store’s owners raised $1.5 billion selling stock in the retailer in March and April, Bloomberg data show. Investment company Saratoga Investama Sedaya PT completed the biggest local IPO this year, raising $152 million last month, the data show.

Indonesia’s rupiah fell to a four-year low yesterday on concern that demand for emerging-market assets will wane if the Federal Reserve starts to reduce stimulus. The country’s benchmark stock index has fallen 10 percent from a record high in May.

To contact the reporters on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net; Joyce Koh in Singapore at jkoh38@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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