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Vehicle fleet owner P2P Transport books fundies for IPO

Story by Sarah Thompson, Anthony Macdonald, Joyce Moullakis via The Australian Financial Review.

There’s a new way for investors to play point-to-point transport and it involves both taxis and Uber.

Street Talk understands P2P Transport – which manages of fleet of 720 vehicles leased to independent taxi drivers, ride share operators and the like – will start meeting fund managers on Monday ahead of an initial public offering.

P2P Transport is expected to seek to raise $30 million for a $100 million market capitalisation. It’s understood the company and adviser Shaw and Partners have already locked in cornerstone backers for the float.

P2P Transport is one of the country’s biggest fleet management businesses focused on point-to-point passenger transport, with earnings pegged for about $13 million this financial year.

It is overseen by former BlueScope and Macquarie Capital executive Tom Varga, while its chairman is Matthew Reynolds, who sits on the board of high-flying Bubs Australia and used to be on G8 Education’s board.

It’s expected to pitch a growth story to fund managers, outlining ambitions expanding well beyond the 720 cars already on its books. Like any roll-up story, the bigger the fleet, the bigger the potential cost savings on things like mechanical repairs and back-office costs.

It’s also likely to point out that it is operating in a highly fragmented industry that generates close to $6 billion in revenue a year.

P2P Transport runs its fleet out of eight sites spread across Sydney, Melbourne and Brisbane.

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