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The Dubai Taxi Company (DTC) made a strong debut on the Dubai Financial Market (DFM), witnessing an immediate surge of nearly 18% to Dh2.18 on its first trading day, surpassing the IPO price of Dh1.85. This positive momentum echoes the trend seen with previous DFM listings, with Salik experiencing a 20% uptick on its opening day last year. The initial trading activity for DTC showcased impressive numbers, with over 28,000 shares traded within the first 15 minutes, totaling Dh64 million. Retail investors, fueled by their post-subscription holdings, contributed to the strong performance.
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DTC's IPO, offering a 24.99% stake, attracted significant interest from retail investors, who were allotted additional shares. The company's value proposition in the UAE's transportation sector, similar to Salik's positioning, garnered investor confidence, leading to a robust start in trading. DTC, holding a 44% share of the Dubai taxi market with a fleet of 7,000 vehicles, is not just a fleet operator; it aims to evolve into a multifaceted mobility solutions provider to sustain growth.
Why it matters
Mansoor Alfalasi, CEO of Dubai Taxi Co., expressed excitement about the IPO, highlighting the strong investor interest and oversubscription levels as a testament to confidence in Dubai's growth and the success of the privatization program. Mostafa Gad, Head of Investment Banking at EFG Hermes, emphasized DTC's adaptability and market resilience, evident in the diverse investor demand and the robust response to the offering.
