Dubai Taxi Company (DTC) has officially commenced the subscription phase for its forthcoming initial public offering (IPO) on Tuesday.
Simultaneously, the company has divulged a pricing range for the IPO, which could potentially value the firm at approximately 4.6 billion dirhams, equivalent to $1.25 billion.
DTC, a government-owned entity, is looking to make available 25% of its ownership through a public offering.
The declared price range per share falls between 1.80 dirhams and 1.85 dirhams, signifying an estimated market capitalization upon listing that spans from 4.5 billion dirhams to 4.6 billion dirhams.
This significant step was announced via an official statement released by DTC.
The final offering price is slated to be unveiled on November 30th.
Pending regulatory approvals, the commencement of trading for DTC shares is scheduled for December 7th on the Dubai Financial Market.
Dubai’s government is consistently pursuing its privatization strategy, aiming to list 10 state-affiliated enterprises as a means to stimulate stock market activity, reduce indebtedness, and cultivate more robust capital markets.
CEO Mansoor Alfalasi expressed optimism regarding the IPO’s prospects, stating, “We have seen strong interest in the IPO since announcing our intention to float last week, reflecting DTC’s compelling investment story.
DTC is at the heart of Dubai’s mobility vision, with the IPO the next important chapter in our journey.”
For the IPO, DTC has enlisted the services of several prominent financial institutions.
Citigroup Global Markets Limited, Emirates NBD Capital, and Merrill Lynch International have been appointed as joint global coordinators and bookrunners.
Additionally, EFG Hermes UAE and First Abu Dhabi Bank will serve as joint bookrunners for the IPO. Independent financial advisory services will be provided by Rothschild and Co Middle East.
This IPO marks a significant milestone in the development of Dubai’s economic landscape, offering investors an opportunity to participate in the growth of a vital component of the city’s transportation infrastructure.