Dubai Taxi Corporation (DTC), a unit of the emirate’s transport authority, is set to initiate the city’s first privatization effort of the year, aiming to raise approximately $300 million through a share sale scheduled for next month.
As part of their upcoming initial public offering (IPO), the taxi operator plans to distribute a fourth-quarter dividend of at least AED 71 million ($19 million) in April. Following this, DTC commits to disbursing a minimum of 85% of its annual net profit through two dividend payments, beginning in the 2024 fiscal year.
Why it matters
This move comes as the RTA seeks to monetize more of its assets, following the successful $1 billion IPO of Salik, the city’s road-toll operator, in 2022. It is expected that an IPO of Dubai Parking will follow suit, furthering the privatization drive within the region.