Here’s how much Dubai Taxi aims to raise in IPO

Dubai Taxi Corporation’s market capitalisation could hit Dhs4.6bn($1.2bn) as the company today announced a share offer price range of between Dhs1.80 and Dhs1.85.

In a statement, the company said it will offer a total of 624,750,000 shares, equivalent to 24.99 per cent of DTC’s total issued share capital.

The Initial Public Offering (IPO) is set to take place on the Dubai Financial Market (DFM).

Dubai Taxi opens for subscription

The IPO subscription period kicks off today and is expected to close on November 28 for UAE retail investors and on November 29 for qualified investors.

Currently, these existing shares are held by the Department of Finance for the Government of Dubai (the selling shareholder).

The company added that its final offer price will still be “determined through a book building process and is expected to be announced on 30th November 2023.”

“The Internal Sharia Supervision Committee of Emirates NBD Bank has issued a Shariah pronouncement confirming that, in its view, the offering is compliant with Shariah principles,” noted the company.

“Admission of the shares to trading on the DFM is expected to take effect on 7th December 2023,” the company added. 

The IPO is still subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on the DFM. 

The IPO is set to be among the highlights of the year. The company operates a fleet of more than 7,000 vehicles, including more than 5,200 taxis.

It remains the biggest taxi fleet operator in Dubai with an approximately 44 per cent market share as of June 30.