Dubai Taxi IPO sells out in an hour

The initial public offering (IPO) of Taxi Dubai, whose owners are seeking to raise 1.16 billion dirhams ($315 million), attracted sufficient purchase orders to cover all the shares offered within the first hour of the opening, showing the high turnout of the first privatization in Dubai in a year.

Dubai’s government is looking forward to selling 624.75 million shares, or 25% of its shares, with a price range of AED 1.8 to AED 1.85 per share, valuing Dubai Taxi at up to AED 4.62 billion.

Investors can apply until November 29, and the final offer price will be announced on November 30. The listing process is expected to be completed, and shares will begin trading on December 7.

This IPO is the first share sale by the Government of Dubai in more than 12 months, raising $8.3 billion from the sale of stakes in four owned companies, including the Dubai Electricity and Water Authority, in 2022.

The share sales are part of a plan unveiled two years ago to include 10 government companies to boost declining trading volumes and keep pace with similar attempts in Abu Dhabi and Riyadh.