Investor Frenzy

Investor Frenzy

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  • Dubai Taxi Company (DTC) successfully raised Dh1.2 billion (approximately $315 million) in its initial public offering (IPO) by pricing it at the top of the range. The final offer price of Dh1.85 per share, representing 24.99% of the company's total issued share capital, resulted in an oversubscription level of 130 times, reaching more than Dh150 billion ($41 billion) in total demand. DTC's market capitalization upon listing is anticipated to be Dh4.6 billion ($1.26 billion), marking a significant achievement on the Dubai Financial Market (DFM).

  • The strong demand for the IPO underscores the high-quality investment opportunity presented by DTC, driven by Dubai's robust economic growth, population and tourism expansion, and a pioneering vision for mobility and sustainability. The offering, oversubscribed by 130 times for qualified investors, reflects confidence from both regional and international institutional investors and UAE-based retail investors. Following the IPO's completion on December 7, subject to approvals, the Department of Finance will continue to own 75.01% of DTC's share capital.

Why it matters

Dubai's move to list state-owned companies, including DTC, aligns with its broader strategy to boost its financial market size and encourage more listings, contributing to the emirate's economic diversification. DTC, founded in 1995 and holding about 44% market share, plays a pivotal role in Dubai's transportation sector, operating a fleet of approximately 7,000 vehicles serving the emirate's growing population. The IPO's success reflects investor confidence in DTC's strategic position within Dubai's dynamic economic landscape.


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