Dubai Taxi Company PJSC (DTC) has revealed the price range for its initial public offering (IPO) and the beginning of the subscription period. The IPO is taking place on the Dubai Financial Market (DFM).
The Offer Price Range for the IPO is valued at AED1.80 to AED1.85 per share, resulting in a market capitalisation between AED4.5 billion and AED4.6 billion (approximately US$1.2 billion).
The offering will consist of 624,750,000 shares, representing 24.99 percent of DTC’s total issued share capital.
These shares are currently held by the Department of Finance for the Government of Dubai, the selling shareholder.
The subscription period for the IPO has begun today and is expected to close on November 28, 2023, for UAE Retail Investors and on November 29, 2023, for Qualified Investors.
The final offer price will be determined through a book building process and is scheduled to be announced on November 30, 2023.
The shares are exoected to be admitted to trading on the DFM on December 7, 2023.
“We are delighted to open the subscription period for the Dubai Taxi Company IPO to all professional investors and retail investors in the UAE,” Mansoor R. Alfalasi, CEO of Dubai Taxi Company said.
He further highlighted DTC’s strong market position, growth potential, and impressive fleet of over 7,000 vehicles.
The IPO offers a unique opportunity for investors to participate in DTC’s growth story, as the company plays a central role in Dubai’s mobility vision.
Dubai Taxi IPO: Shariah-compliant, global coordination
The offering is expected to be compliant with Shariah principles, as confirmed by the Internal Sharia Supervision Committee of Emirates NBD Bank PJSC.
Detailed information regarding the Offer Price Range, subscription process, and participating banks can be found in the UAE Prospectus and the English-language International Offering Memorandum, available on the DTC website.
The Independent Financial Advisor for the IPO is Rothschild & Co Middle East Limited, while Citigroup Global Markets Limited, Emirates NBD Capital PSC, and Merrill Lynch International have been appointed as Joint Global Coordinators and Joint Bookrunners.
EFG-Hermes UAE Limited, in conjunction with EFG Hermes UAE LLC, and First Abu Dhabi Bank PJSC are serving as Joint Bookrunners.
Emirates NBD Bank PJSC has been assigned as the Lead Receiving Bank, and several other banks have been appointed as Receiving Banks.
Investors are encouraged to conduct their own due diligence to ensure the Shariah compliance of the offering. The IPO call centre can be reached at 800 ENBD IPO (3623 476) for further inquiries.
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