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Saturday, March 2, 2024

Dubai Taxi to Offer 24.99% of Shares in Initial Public Offering (IPO)

Shares Dubai Taxi has announced its intention to launch an initial public offering (IPO), aiming to sell 624.75 million shares and list on the Dubai Financial Market. The shares, each valued at Dh0.04, constitute 24.99% of the company’s total issued share capital. The subscription period is scheduled to open on November 21, with UAE retail investors able to participate until November 28, and professional investors until November 29. Trading of the shares is expected to commence in December 2023.

Key Financials and Dividend Strategy

The share capital, as of the listing date, stands at Dh100 million, with plans to pay dividends biannually, beginning in fiscal year 2024. The company anticipates distributing a first dividend of at least Dh71 million in April 2024, based on the financial performance of Q4 2023.

Government Approval and Leadership Changes

His Highness Sheikh Mohammed bin Rashid Al Maktoum approved Law No. (21) of 2023 related to ‘Dubai Taxi Company,’ mandating a shift from ‘Dubai Taxi Corporation’ in existing laws. Leadership changes include Abdul Mohsin Ibrahim Younis as chairman and Ahmed Ali Al Kaabi as vice chairman, among others.

Strategic Move Amid Government Offerings

The Dubai Taxi IPO follows a series of government-backed public offerings, with entities like Dewa, Salik, Tecom Group, and Empower going public. The move aims to enhance market liquidity and increase the bourse’s market capitalization to Dh3 trillion.

Operational Overview and Market Presence

Dubai Taxi, with a fleet of 7,146 as of H1 2023, commands a 44% market share in the emirate. It operates in various mobility sectors, including buses, limousines, and delivery bikes. Revenues increased from Dh864.1 million in H1 2022 to Dh956.56 million in H1 2023, with net income rising from Dh108.99 million to Dh186.33 million during the same period.

Financial Institutions Involved: Shares

Joint book runners for the IPO are EFG-Hermes UAE and First Abu Dhabi Bank, while the lead receiving bank is Emirates NBD. Other participating banks include Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, and Mashreq Bank.

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