Dubai Taxi Company Sets Stage for IPO, Aiming for AED4.6 Billion Market Valuation

Dubai Taxi Company, a subsidiary of the state-owned Roads and Transport Authority, has disclosed the pricing range for its upcoming initial public offering (IPO), setting it between AED1.80 and AED1.85 ($0.49 to $0.50) per share.

At the time of listing, this establishes a market capitalization ranging from AED4.5 billion to AED4.6 billion.

The subscription period for retail investors commenced on Tuesday and is scheduled to conclude on November 28, while qualified investors have until November 29 to participate.

The final offer price will be determined through a book-building process, with the announcement slated for November 30.

Trading of the shares is anticipated to commence on the Dubai Financial Market on December 7.

Dubai Taxi plans to issue 624.75 million shares, constituting 24.99 percent of its total issued share capital. Notably, all offered shares are owned by the Dubai government's finance department.

The company aims to provide regular returns to shareholders, intending to initiate biannual dividend payments in April and October, starting from 2024.

The first dividend, projected to be at least AED 71 million, is set to be disbursed in April 2024.

Additionally, a minimum of 85 percent of the annual net profit will be allocated as a dividend payout for 2024 and the subsequent years.

Rothschild & Co Middle East Limited has been appointed as the independent financial advisor for the IPO.

Citigroup Global Markets Limited, Emirates NBD Capital, and Merrill Lynch International are named as joint global coordinators and joint bookrunners.

EFG-Hermes UAE Limited and First Abu Dhabi Bank PJSC will serve as joint bookrunners.

Abdul Younis is slated to chair the Dubai Taxi board of directors, with Ahmed Al Kaabi serving as vice chair. In a parallel development, in September 2022, Dubai toll operator Salik successfully raised AED3.74 billion from its own IPO.

Pramod Kumar / AGBI