Dubai Taxi Co. launches IPO with up to $315 million offer

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Dubai Taxi Co. launches IPO with up to $315 million offer
Credit: © Reuters.

DUBAI - Dubai Taxi Co., a leading taxi operator in Dubai, initiated its initial public offering (IPO) today, inviting investors to subscribe for shares priced between Dh1.8 and Dh1.85. The IPO aims to raise up to 1.16 billion dirhams ($315 million), which could value the company at approximately 4.62 billion dirhams.

The subscription period for individual investors will run until Nov. 28, while professional investors can bid until Nov. 29. The final offer price is expected to be announced on Thursday, Nov. 30, with the company slated to begin trading on the Dubai Financial Market (DFM) on Wednesday, Dec. 7.

This move comes as part of a broader effort to enhance market volumes in the wake of last year's successful privatizations, which included the electric utility sector and raised $8.3 billion. The IPO also aligns with the United Arab Emirates' strategy to promote population growth by attracting diverse groups such as cryptocurrency entrepreneurs and Russian migrants in the post-pandemic era.

Dubai Taxi Co., known for having the largest fleet and market share in Dubai, plans to kick off a generous dividend policy starting in fiscal year 2024. This policy is expected to deliver biannual payouts, with an anticipated dividend of Dh71 million for the last quarter of 2023.

The company has exhibited significant financial growth since FY2019. In FY2022, revenues jumped by nearly one-third to AED1.76 billion, while profits soared by half to AED224 million (USD1 = AED3.6730), showcasing a consistent upward trend. Furthermore, within the first nine months of this fiscal year, revenue has already increased by over one-tenth.

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