Dubai Taxi Company is gearing up for an initial public offering (IPO), planning to offer nearly a quarter of its stake to investors.
This move follows its establishment as a public joint-stock company under a new law by Sheikh Mohammed bin Rashid, aimed at expanding Dubai’s capital markets. Scheduled for listing on the Dubai Financial Market, the company will offer 624.75 million shares, enjoying financial and administrative independence.
Dubai Govt’s Department of Finance to Retain 75.01% Stake
The Department of Finance, representing the Dubai government, will maintain a 75.01% shareholding, according to the company’s prospectus. The selling shareholder reserves the right to adjust the offering size.
The subscription period for both retail and institutional investors begins on November 21, with the retail tranche closing on November 28. Qualified institutional investors have until November 29 to subscribe, according to The National News.
In the qualified investor offering, the Emirates Investment Authority will reserve 5%, and the Pensions and Social Security Fund of Local Military Personnel will reserve another 5%. The company plans to announce the final offer price on November 30, with the expected listing date set for December 7, as outlined in the prospectus.
Abdul Kalbat, chairman of Dubai Taxi Company, emphasizes the company’s role in Dubai’s growth and sustainability vision. The IPO aligns with Dubai’s privatisation program, providing an opportunity for foreign investment.
This move is part of Dubai’s broader plan, announced in November 2021, to list 10 state-owned companies and expand its financial market to AED 3T.
Dubai Taxi Company Serves Growing Population
Dubai Taxi Company operates a fleet of approximately 6,000 vehicles to cater to the expanding population of Dubai, which is anticipated to reach 5.8 million by 2040. The company facilitated about 96 million journeys in the first half of the current year, with hybrid vehicles constituting over 70% of its service cars.
The new law governing Dubai Taxi Company outlines its objectives, including providing transport services with traditional taxis, specialized transportation with self-driving vehicles and flying taxis, all within existing regulations.
Furthermore, the company leases vehicles, supplies qualified drivers, and rents bikes to cargo transport firms. Emirates NBD Capital, First Abu Dhabi Bank, and EFG Hermes UAE are the appointed joint lead managers for the IPO, with Emirates NBD as the lead receiving bank.
