Dubai Taxi IPO oversubscribed 130 times; values company at Dh4.6 billion

Final offer price at Dh1.85 values company at Dh4.6 billion


Somshankar Bandyopadhyay

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The taxi operator announced the successful completion of the bookbuild and public subscription process for its IPO on Wednesday.
The taxi operator announced the successful completion of the bookbuild and public subscription process for its IPO on Wednesday.

Published: Wed 29 Nov 2023, 6:50 PM

Last updated: Wed 29 Nov 2023, 8:42 PM

Dubai Taxi Company on Wednesday announced that its initial public offering (IPO) was oversubscribed 130 times.

The final offer price was set at Dh1.85, indicating a market value of Dh4.6 billion when the company starts trading on the Dubai Financial Market on December 7.

The taxi operator announced the successful completion of the bookbuild and public subscription process for its IPO on Wednesday.

The final price resulted in an Offering size of around Dh1.2 billion (equivalent to approximately $315 million). The company and the selling shareholder confirmed the previously announced offering size consisting of a total of 624,750,000 shares, equivalent to 24.99 per cent of DTC’s total issued share capital.

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The offering saw tremendous demand from international and regional institutional investors and retail investors in the UAE, with total demand for the offering amounting to over Dh150 billion, implying an oversubscription level of 130 times in aggregate. This represents the highest oversubscription level achieved by an IPO on the DFM.

The IPO will result in total gross proceeds of around Dh1.2 billion being paid to the Department of Finance representing the Government of Dubai (the selling shareholder), after adjusting for any expenses related to the offering, statement by the company said.

Mansoor R. Alfalasi, chief executive officer, Dubai Taxi Company, said: “The exceptionally strong demand for the IPO, which was 130 times oversubscribed, reflects the high-quality investment opportunity provided by DTC, anchored in Dubai’s robust economic, population and tourism growth and world-leading mobility and sustainability vision. With DTC’s own growth accelerating, enabled by the continued expansion of our market-leading fleet, ongoing investment in the latest technologies and our expansion across Dubai and into neighbouring emirates, this is an exciting time for DTC and our new investors. We are also proud to support Dubai’s privatisation programme, with overwhelming investor interest and our significant oversubscription levels reflecting strong confidence in Dubai and supporting the further expansion of the Dubai Financial Market.”

Based on the Final Offer Price, DTC’s market capitalisation upon listing is expected to be approximately Dh4.6 billion. Following the completion of DTC’s IPO, the Department of Finance, representing the Government of Dubai, will continue to own 75.01 per cent of DTC’s share capital. Investors who subscribed through the first tranche will receive an SMS confirmation of their respective allocation on Tuesday, December 5, with refunds due to commence from the same date.

The completion of the offering and admission is currently expected to take place on December 7, under the symbol DTC and ISIN AEE01356D236, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on the DFM, the company said.

Rothschild & Co Middle East Limited has been appointed as the independent financial advisor. 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 (acting in conjunction with EFG Hermes UAE LLC) and First Abu Dhabi Bank PJSC have been appointed as joint bookrunners.

Emirates NBD Bank PJSC is acting as the Lead Receiving Bank and Abu Dhabi Islamic Bank PJSC, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank PJSC and Mashreq Bank have also been appointed as receiving banks.

The Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has issued pronouncements confirming that, in its view, the Offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the Offering is Shariah compliant for their own purposes.


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