Home UAE Dubai Dubai Taxi IPO raises Dhs1.2bn, 130 times oversubscribed Based on the final offer price, the company’s market capitalisation upon listing is expected to be approximately Dhs4.6bn by Gulf Business November 30, 2023 Image: Dubai Media Office/ DTC Dubai Taxi Company has successfully closed the bookbuild and public subscription process for its initial public offering (IPO) on the Dubai Financial Market (DFM). The final offer price has been set at Dhs1.85, at the top end of the previously announced offer price range, resulting in an offering size of around Dhs1.2bn (equivalent to approximately $315m). The previously announced offering size consisting of a total of 624,750,000 shares, equivalent to 24.99 per cent of the company’s total issued share capital. The offering saw tremendous demand from international and regional institutional investors and retail investors in the UAE, with total demand amounting to over Dhs150bn (equivalent to approximately $41bn), implying an oversubscription level of 130 times in aggregate. This represents the highest oversubscription level achieved by an IPO on the DFM. Dubai Taxi Company IPO reflects ‘confidence in Dubai’ The IPO will result in total gross proceeds of around Dhs1.2bn being paid to the Department of Finance representing the Dubai government after an adjustment for any expenses related to the offering. Mansoor R Alfalasi, the company’s CEO, said: “The exceptionally strong demand for the IPO, which was 130 times oversubscribed, reflects the high-quality investment opportunity provided by the company, anchored in Dubai’s robust economic, population and tourism growth and world-leading mobility and sustainability vision. “With Dubai Taxi Company’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 neighboring emirates, this is an exciting time for the company 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 DFM.” The DTC’s Initial Public Offering is now closed. The final offering price has been set at AED 1.85. The subscription attracted significant demand, exceeding over AED 150 billion, and marking an oversubscription value of more than 130 times.#DubaiTaxiPJSC#DubaiTaxiShares#IPO pic.twitter.com/6MM7mpVOcj — DTC (@DTCUAE) November 29, 2023 Based on the final offer price, the company’s market capitalisation upon listing is expected to be approximately Dhs4.6bn (equivalent to approximately $1.26bn). Following the completion of DTC’s IPO, the Department of Finance (representing the Dubai government) will continue to own 75.01 per cent of the company’s share capital. Investors who subscribed through the first tranche will receive an SMS confirmation of their respective allocation on 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, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on the DFM. Tags Dubai Government Dubai taxi Company final share price IPO News You might also like Saudi Arabia’s first opera house is being built here ADNOC to buy OCI stake in Fertiglobe for $3.62bn PureHealth’s IPO attracts Dhs265bn in orders Saudi Arabia’s MBC Group gets $14.5bn orders for IPO