Dubai Taxi Company takes the wheel: A guide to its upcoming IPO
Dubai's thriving capital markets are set to witness another significant milestone, can you guess what it is?
This time around it isn’t about the real estate market but the Dubai Taxi Company (DTC). Set to gear up for its initial public offering (IPO), after Salik, Empower and Recom went public, now DTC is next in line.
We have our hands on everything you need to know about this IPO, from what it means for investors, the city's growth, to the future of transportation.
DTC’s journey into the public sphere
The Dubai Taxi Company is set to offer up to a 24.99% stake in its upcoming IPO.
Now, if you don’t know what an IPO is - Here’s a quick brush up on it: When a private company first sells shares of stock to the public, this process is known as an initial public offering (IPO). In essence, an IPO means that a company's ownership is transitioning from private ownership to public ownership.
DTC will be established as a public joint-stock company under the visionary leadership of Sheikh Mohammed bin Rashid, the Vice President and Ruler of Dubai, DTC is poised to contribute to the emirate's capital market expansion, and plays in line with the economic vision of 2030 for Dubai.
This move comes as part of Dubai's broader initiative to expand its capital markets and enhance the city’s financial resilience. The IPO is expected to be listed on the Dubai Financial Market on December 7, and is anticipated to play a pivotal role in strengthening the city's economy.
What can you expect from the IPO?
The DTC's IPO will include 624.75 million shares, which will be listed on the Dubai Financial Market, marking a significant step toward "financial and administrative independence," as stated by the Dubai Media Office.
With the Department of Finance retaining the remaining 75.01% shareholding, DTC is set to embark on a new chapter with potential benefits for both local and foreign investors.
The subscription period for retail and institutional investors is scheduled to commence on November 21, 2023. The offering includes reserved allocations for the Emirates Investment Authority and the Pensions and Social Security Fund of Local Military Personnel, demonstrating a commitment to diverse investment opportunities.
The final offer price is set to be unveiled on November 30, 2023, with the official listing date on December 7, 2023, as per the prospectus. This timeline provides investors with a clear roadmap for participation in this landmark event.
DTC’s role in Dubai’s growth strategy
The Dubai Taxi Company was founded in 1995, and since has become an integral part of the emirate's transport ecosystem. Currently, the DTC holds a fleet of approximately 6,000 vehicles, DTC serves the diverse needs of Dubai's expanding population, which reached 3.61 million in April 2022.
With an eye on the future, DTC's objectives, as outlined in the new law, extend beyond traditional taxi services. The company aims to diversify its offerings by providing specialised transportation using self-driving vehicles and flying taxi services, in compliance with existing regulations.
Want to know about flying taxis, and self-driving vehicles? We broke it down for you!
Investing in Dubai’s transportation future
This IPO serves as a strategic move not only for DTC but also for Dubai's broader ambitions.
We’ll tell you how - Abdul Kalbat, the Chairman of Dubai Taxi Company, has emphasised the company's commitment to supporting Dubai's privatisation program and providing opportunities for foreign investment. With Dubai's exceptional infrastructure and plans to double its economy by 2033, DTC plans to be a key player in the city's growth, mobility, and sustainability vision.
As the IPO unfolds, banks such as Emirates NBD Capital, First Abu Dhabi Bank, and EFG Hermes UAE have taken the lead as joint managers, with Emirates NBD as the lead receiving bank.
Dubai Taxi Company's IPO also marks a significant stride in the emirate's journey toward economic diversification and market expansion. Investors looking to be part of Dubai's transformational story should keep a close eye on the developments leading up to the IPO and consider the potential long-term benefits of investing in this iconic transportation entity.
Impressive, isn’t it?
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