Dubai Taxi to offer 24.99% of Shares in IPO

Dubai Taxi announced its intention to make an initial public offering (IPO) of 24.99% of its shares in the Dubai Financial Market.

The company, which operates a taxi fleet in Dubai, said that 624.75 million shares will be made available for sale and are wholly owned by the Dubai Government’s finance department.

The subscription period will open on Tuesday, November 21, and close on November 28 for individual investors and November 29 for enterprises, according to a statement issued by the company on Monday.

The company expects to complete the rollout process and accept the listing in December 2023.

Rothschild & Partners has appointed the Middle East as an independent financial advisor, has also appointed Citigroup Global Markets Limited, Emirates NBD Capital, and Merrill Lynch International as joint global coordinators and subscription administrators, and has appointed Financial Group Hermes and First Abu Dhabi Bank as joint directors.

The Dubai Taxi market share was about 44% until the middle of this year, and it also operated on other mobility lines, including buses, limousines, and delivery bikes.

Highlights of the company’s offering:

-The offering price per share will be determined after the order log construction process.

-After completing the offering and starting in fiscal year 2024, the company intends to distribute the profits twice a year, in April and October each year.

-The company expects a phased dividend in April 2024 of at least AED 71 million from the fourth quarter of 2023.

-For 2024 and the following years, a dividend framework will be implemented with a minimum of 85% of annual net profit for this period.

-5% of the offering shares will be booked with the Emirates Investment Authority (Federal Sovereign Fund).

-5% of the offering shares will be reserved for the local military pension and social insurance fund.