Finance Dubai Taxi Company to list 25% stake in IPO By Pramod Kumar November 13, 2023, 5:22 AM Wam The Dubai government’s finance department owns all the shares offered in Dubai Taxi Company's IPO Status changed by new law Dividends twice yearly UAE avoids IPO downturn Dubai Taxi Company has announced plans to launch its initial public offering (IPO) after its legal status was amended to a public joint-stock company. The company will issue 624.75 million shares at a nominal value of AED 0.04 on the Dubai Financial Market, representing 24.99 percent of its total issued share capital. The subscription period for UAE retail investors will run from November 21 to 28. The IPO will open for professional investors for one day on November 29. Mena IPOs drop but analysts still bullish for 2024 Dubai considers taxi operator IPO as sector surges Dubai taxi franchise adds 269 Tesla cars to meet green goals The final offer price will be determined through the book-building process. The Dubai government’s finance department owns all the shares offered, with the listing planned for December. Dubai Taxi intends to pay dividends twice yearly in April and October starting in 2024. It expects to distribute a first dividend of at least AED 71 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. Rothschild & Co Middle East Limited has been appointed independent financial advisor. Citigroup Global Markets Limited, Emirates NBD Capital and Merrill Lynch International have been named as joint global coordinators and joint bookrunners. EFG-Hermes UAE Limited and First Abu Dhabi Bank PJSC have been appointed as joint bookrunners. Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum on Sunday issued a new law that converted Dubai Taxi to a public joint-stock company. The company will have financial and administrative independence to pursue its activities and objectives, the UAE state-owned Wam news agency said. Abdul Younis will chair the new company’s board, while Ahmed Al Kaabi will serve as vice chair. Other members include Shehab Abu Shehab, Youssef bin Ghalaita, Hanan Sulaiman Al Suwaidi, Abdulla Damithan, and Issa Natouf. In September 2022, Dubai toll operator Salik raised AED3.74 billion from its initial public offering. 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 listings was driven predominately by Saudi Arabia and the UAE.