Dividends Dubai Taxi Company (DTC) has announced its intention to go public, joining other government entities in launching an initial public offering (IPO). The move follows the introduction of a new law, granting the transport solutions provider financial and administrative independence.
Key Points from the ‘Intention to Float’ Document:
- Offer Details:
- 624.75 million shares at Dh0.04 each, representing 24.99% of DTC’s total issued share capital.
- Share Capital:
- Dh100 million, divided into 2.5 billion fully paid shares held by the Department of Finance for the Government of Dubai.
- Flexibility in Offering Size:
- The offering size and tranche sizes are subject to adjustment before the subscription period ends.
- Subscription Periods:
- UAE retail offering: November 21-28.
- Qualified investor offering: November 21-29.
- Expected Completion:
- December 2023, including approval for listing and trading on the Dubai Financial Market.
- Sharia Compliance:
- Confirmed by the Internal Sharia Supervision Committee of Emirates NBD Bank.
- Dividend Plans:
- Dividends planned twice yearly from fiscal year 2024, with an earnings-linked distribution framework.
Financial Advisory:
- Independent financial advisor: Rothschild & Co Middle East Limited.
- Joint global coordinators and joint bookrunners: Citigroup Global Markets Limited, Emirates NBD Capital PSC, Merrill Lynch International.
- Joint bookrunners: EFG-Hermes UAE Limited and First Abu Dhabi Bank PJSC.
- Lead receiving bank: Emirates NBD Bank.
- Dividends planned twice yearly from fiscal year 2024, with an earnings-linked distribution framework.
DTC, established in 1994, DTC has evolved into Dubai’s leading taxi operator, holding a 44% market share as of June 30, 2023. Services include taxis, limousines, school and commercial buses, and last-mile delivery via bikes.
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