Dubai Taxi Corporation (DTC) a unit of the emirate’s transport authority, is set to initiate the city’s first privatisation effort of the year, aiming to raise approximately $300 million through a share sale scheduled for next month, Bloomberg reported, citing an investor presentation.
The presentation, as revealed by insiders, discloses the company’s intentions.
As part of their upcoming initial public offering (IPO), the taxi operator plans to distribute a fourth-quarter dividend of at least AED71 million ($19 million) in April.
Following this, DTC commits to disbursing a minimum of 85 percent of its annual net profit through two dividend payments, beginning in the 2024 fiscal year.
Dubai’s Roads & Transport Authority (RTA) is reportedly collaborating with Bank of America Corp., Citigroup Inc., and Emirates NBD Capital to facilitate the offering, which will be listed in Dubai, as reported by Bloomberg News previously.
This move comes as the RTA seeks to monetize more of its assets, following the successful $1 billion IPO of Salik Co., the city’s road-toll operator, in 2022.
It is expected that an IPO of Dubai Parking will follow suit, furthering the privatisation drive within the region.
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