The Dubai Taxi Company has officially concluded the book build and public subscription phase for its initial public offering (IPO) on the Dubai Financial Market (DFM).
The IPO set the final price at AED 1.85, positioning it at the upper limit of the previously disclosed Offer Price Range. This decision brings the total offering size to approximately AED 1.2B ($327M).
Both the company and the selling shareholder affirm the earlier specified offering size, comprising 624,750,000 shares, equating to 24.99% of DTC’s overall issued share capital.
Dubai Taxi IPO
The IPO witnessed significant interest from both international and regional institutional investors, as well as retail investors within the UAE. The total demand surpassed AED 150B ($41B), indicating an extraordinary oversubscription rate of 130 times.
This marks the highest level of oversubscription ever achieved by an IPO on the DFM.
Upon completion, the IPO will generate total gross proceeds of approximately AED 1.2B ($327M), to be directed to the Department of Finance representing the Government of Dubai. This amount will be adjusted for any expenses related to the offering.
DTC is confident that the Final Offer Price per share offers investors an exceptionally appealing value proposition, reflecting the company’s growth trajectory and compelling investment narrative. Robust macro fundamentals, a commanding market share, an enticing financial profile, and the enduring confidence of the selling shareholder in Dubai’s vision and growth constitute the foundation of this narrative.
DTC CEO Mansoor R. Alfalasi: IPO’s 130x Oversubscription
Mansoor R. Alfalasi, CEO DTC, said: “The exceptionally strong demand for the IPO, which was 130 times oversubscribed, reflects the high-quality investment opportunity provided by DTC, anchored in Dubai’s robust economic, population and tourism growth and world-leading mobility and sustainability vision.”
“With DTC’s own growth accelerating, enabled by the continued expansion of our market-leading fleet, ongoing investment in the latest technologies and our expansion across Dubai and into neighbouring emirates, this is an exciting time for DTC and our new investors.”
“We are also proud to support Dubai’s privatisation programme, with overwhelming investor interest and our significant oversubscription levels reflecting strong confidence in Dubai and supporting the further expansion of the Dubai Financial Market.”
The anticipated market capitalization of DTC upon listing is approximately AED 4.6B ($1.26B), based on the Final Offer Price.
Post the IPO’s conclusion, the Department of Finance, representing the Government, will retain ownership of 75.01% of DTC’s share capital, according to Arabian Business.
Investors participating in the First Tranche (the “UAE Retail Offering”) will receive an SMS confirmation regarding their allocated shares on Tuesday, December 5, 2023, with refunds set to commence from the same date.
The Offering and Admission are currently scheduled for completion on December 7, 2023.
