Dubai taxi operator to raise $300m in IPO next month

Wam

Dubai Taxi Corporation, a unit of the Road and Transport Authority (RTA), aims to raise nearly AED1.10 billion ($300 million) from a share sale in November, Bloomberg reports.

The taxi operator intends to distribute a dividend of AED71 million in April for the fourth quarter of 2023, the news agency reported, citing an investor. 

Dubai Taxi will pay almost 85 percent of its annual net profit in two dividend payments from 2024.

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The RTA is working with Bank of America Corporation, Citigroup, and Emirates NBD Capital on the IPO, with listing planned on the Dubai stock exchange.

In September 2022, Dubai toll operator Salik raised AED3.74 billion from its initial public offering.

The listing of Dubai Parking is likely to follow, the report said. 

According to the EY IPO Eye Q2 2023 report, activity in the Middle East and North Africa raised a total of $1.8 billion from 13 IPOs, down 80 percent year on year. The 44 percent growth in the number of listings was driven predominately by Saudi Arabia and the UAE.