Dubai Taxi Company (DTC) has announced its intention to proceed with an Initial Public Offering (IPO). The firm is now officially recognised as a public joint-stock company named ‘Dubai Taxi Company (PJSC).’ Ordinary shares will be listed on the Dubai Financial Market (DFM).
DTC plans to offer 624,750,000 existing shares, representing 24.99 percent of its total issued share capital. These shares are currently held by the Department of Finance for the Government of Dubai.
The offering includes two segments: UAE Retail Offering and Qualified Investor Offering, open to professional investors outside the United States.
The subscription period for the UAE Retail Investors will begin on November 21 and end on November 28. Professional investors have until 29th November to subscribe.
The final offer price will be determined through a book-building process. The Offering’s size and tranche size are subject to change at the discretion of the Selling Shareholder.
The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has confirmed that the Offering complies with Shariah principles.
Shares are expected to be admitted to trading on the DFM in December 2023.
Dubai Taxi Company IPO: Capital structure and dividend policy
DTC’s share capital is AED 100,000,000 divided into 2,500,000,000 shares with a nominal value of AED 0.04. Starting from the fiscal year 2024, the company plans to pay dividends twice each year in April and October.
The first dividend of at least AED 71 million is expected in April 2024. Dubai Taxi Company (PJSC) intends to distribute a minimum of 85 percent of annual net profit for the relevant period. The dividend policy is designed to support long-term growth while ensuring adequate capital for operational requirements and investments.
Abdul Muhsen Ibrahim Kalbat, Chairman, Board of Directors, Dubai Taxi Company said,
“Thanks to the wise leadership of His Highness, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Dubai continues to demonstrate its commitment to growing world-class businesses and strengthening its robust capital markets.”
“Benefitting from Dubai’s exceptional infrastructure and an ambition to double the size of its economy by 2033, supported by the Dubai Urban Master Plan 2040 which maps out a comprehensive plan for sustainable urban development in the emirate, Dubai Taxi Company remains key to the growth, mobility and sustainability vision of Dubai, playing an integral role in moving and connecting the millions who call Dubai home and the rapidly increasing number of tourists who visit the UAE every year,” Kalbat explained.
“Through this offering, DTC is proud to support the continuation of the privatization programme pursued by the Emirate of Dubai, providing a further opportunity for foreign investment and fostering a culture of world-leading innovation and industry,” he concluded.
Dubai Taxi Company (DTC) holds 44 percent of market share in taxi fleet, as of June 2023, DTC recorded a fleet of over 7,000 vehicles with more than 14,000 driver partners.
The completion of the IPO and admission to trading on the DFM are anticipated to occur in December 2023, subject to market conditions and regulatory approvals. The IPO represents a significant milestone for DTC as it continues to play a pivotal role in Dubai’s mobility and economic growth.
The UAE prospectus and the Initial Public Announcement is set to be published today with the International Offering Memorandum to be published soon. Details will be available on www.dubaitaxi.ae/en/IPO
On Monday, Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai and Vice President and Prime Minister of the UAE, has issued Law No. (21) of 2023 in regards to the reformation of Dubai Taxi Company (DTC) officially recognising the firm as a public joint-stock company named ‘Dubai Taxi Company (PJSC).’
The official statement from the office of Sheikh Mohammed confirmed that this adjustment provides the company with financial and administrative autonomy, enabling it to actively pursue its goals and operations.
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