Dubai Taxi Company has announced the successful completion of the bookbuild and public subscription process for its initial public offering (IPO) on the Dubai Financial Market (DFM).
The final price for the offering was set at AED 1.85, at the top end of the previously announced Offer Price Range, resulting in an offering size of around AED1.2bn ($327m).
The company and the selling shareholder confirm 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.
Dubai Taxi IPO
The offering saw tremendous demand from international and regional institutional investors and retail investors in the UAE, with total demand amounting to more than AED150bn ($41bn), 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 AED1.2bn ($327m) being paid to the Department of Finance representing the Government of Dubai, after adjusting for any expenses related to the offering.
DTC believes the Final Offer Price per share provides investors with a highly attractive value proposition that reflects DTC’s growth trajectory and compelling investment story, which combines strong macro fundamentals, dominant market share and an attractive financial profile, along with the selling shareholder’s long-term confidence in the vision and growth of Dubai.
Mansoor R. Alfalasi, CEO DTC, 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 capitalization upon listing is expected to be approximately AED4.6bn ($1.26bn).
Following the completion of DTC’s IPO, the Department of Finance, representing the Government, will continue to own 75.01 per cent of DTC’s share capital.
Investors who subscribed through the First Tranche (the “UAE Retail Offering”) will receive an SMS confirmation of their respective allocation on Tuesday December 5, 2023, 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, 2023.
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