DUBAI - Following an overwhelming response from investors, Dubai Taxi Company (DTC) has upsized its initial public offering (IPO) by adding approximately twelve million shares to the UAE Retail Offer. Today, as the subscription period for qualified investors comes to a close, the company prepares to announce the final offer price on Thursday, with expectations to finalize its IPO and Admission by December 7, 2023.
The increase in the retail share allocation, from roughly 62.48 million to 74.97 million shares, signifies a revised figure of 12% of the total offered shares. This adjustment was made to accommodate the high demand from retail investors and maintain the total IPO size at over half a billion shares, representing just below 25% of DTC's issued capital stock.
DTC, which operates a fleet of around 7,000 vehicles and holds a market share of 44%, aims to raise up to Dh1.16 billion (approximately $315 million) through the IPO. The price range for the offering has been set at Dh1.80 to Dh1.85 per share, in alignment with Dubai's strategy to enhance its capital markets and promote private sector listings.
The IPO process is being managed by a consortium of financial institutions, with Rothschild & Co Middle East Limited acting as the Independent Financial Advisor. Citigroup is one of the Joint Global Coordinators and Joint Bookrunners, alongside Merrill Lynch International, Emirates NBD Capital PSC, and EFG-Hermes UAE Limited, with additional collaboration from EFG Hermes UAE LLC. Emirates NBD Bank PJSC serves as the Lead Receiving Bank, and the IPO's compliance with Shariah standards has been confirmed by the bank's Internal Sharia Supervision Committee.
The Securities and Exchange Authority (SCA) has approved the expanded offering, which now values the Retail Tranche between AED135-139 million (USD1 = AED3.6724), or about 12% of the Offer Shares. This strategic move is part of a broader effort to diversify investment opportunities and strengthen the financial infrastructure in Dubai, offering a robust platform for both retail and qualified investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.