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Dubai Taxi IPO order book hits $41bn on strong demand

Dubai Taxi Company said the order book for its initial public offering (IPO) swelled to over AED150 billion ($41 billion), as it was covered 130 times Wam
Dubai Taxi Company shares are expected to list on the Dubai Finance Market on December 7

Dubai Taxi Company said the order book for its initial public offering (IPO) swelled to over AED150 billion ($41 billion), as it was covered 130 times.

“This represents the highest oversubscription level achieved by an IPO on the Dubai Financial Market,” the company, a unit of the state-owned Roads and Transport Authority, said in a statement.

The institutional investor tranche was almost 135 times oversubscribed. The retail tranche was oversubscribed over 94 times.

The IPO raised AED1.2 billion after being priced at the top end of the marketed range at AED1.85.

The company and the selling shareholder sold 624.75 million shares, or 24.99 percent of the total issued share capital.

Dubai Taxi Company CEO Mansoor R. Alfalasi said: “The exceptionally strong demand for the IPO reflects the high-quality investment opportunity provided by DTC, anchored in Dubai’s robust economic, population and tourism growth.”

Based on the final offer price, DTC’s market capitalisation upon listing is expected to be AED4.6 billion. 

Following the IPO’s completion, Dubai’s finance department will continue to own 75.01 percent of DTC’s share capital.

The share listing will take place on December 7, subject to market regulatory approvals.

The taxi operator intends to pay dividends twice yearly in April and October starting in 2024. It expects to distribute a first dividend of at least AED71 million, which will be paid in April 2024.

For 2024 and the years after, a minimum of 85 percent of annual net profit will be made available as dividend payout.

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