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Dubai Taxi Company is set to offer a substantial 25% stake in its upcoming IPO, in sync with Dubai's overarching capital market growth. Established as a public joint-stock company under the new law passed by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the company plans to float 624.75 million shares on the Dubai Financial Market, emphasizing its commitment to "financial and administrative independence."
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A substantial 75.01% shareholding will still remain with the Department of Finance. With the subscription period for retail and institutional investors opening on November 21, final offer price to be disclosed on November 30 and the expected listing date on December 7, this move mirrors Dubai's push to list state-owned enterprises and foster foreign investment. Emirates NBD Capital, First Abu Dhabi Bank, and EFG Hermes UAE are steering the IPO, with Emirates NBD as the lead receiving bank.
Why it matters
With a robust presence in Dubai since 1995, the Dubai Taxi Company oversees a fleet of 6,000 vehicles, meeting the demands of the emirate's expanding population. The IPO signifies a strategic shift toward forward-looking transportation services, encompassing self-driving and flying taxis. The company's dividend policy too underlines confidence in resilient cash flows and long-term earning potential.
