Dubai Taxi sets IPO price range, targets company at up to $1.2 billion

Dubai Taxi Company (DTC) today announced the price range for the sale of its shares (Offer Price Range) and the start of the subscription period for its initial public offering (IPO).
In a statement issued today by DTC, the company announced that the Offer Price Range had been set between Dh1.80 and Dh1.85 per share, implying a market capitalisation at the time of listing of between Dh4.5 billion and Dh4.6 billion ($1.2 billion).
Moreover, the company also declared a total of 624,750,000 shares, equivalent to 24.99% of DTC’s total issued share capital, will be offered. All Shares to be offered are existing shares held by the Department of Finance for the Government of Dubai as the selling shareholder.
The IPO subscription period starts today and is expected to close on 28th November for UAE Retail Investors and on 29th November for Qualified Investors. The final offer price will be determined through a book-building process and is expected to be announced on 30th November.
The statement added that the completion of the Offering and Admission is currently expected to take place on 7th December, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.
Speaking on the occasion, Mansoor R. Alfalasi, Chief Executive Officer, DTC, said, “We are delighted to open the subscription period for the Dubai Taxi Company IPO to all professional investors and retail investors in the UAE. We have seen strong interest in the IPO since announcing our intention to float last week, reflecting DTC’s compelling investment story which combines strong market fundamentals and an attractive growth opportunity powered by our fleet of over 7,000 vehicles.”
Rothschild & Co Middle East Limited has been appointed as the Independent Financial Advisor. Citigroup Global Markets Limited, Emirates NBD Capital PSC and Merrill Lynch International have been appointed as Joint Global Coordinators and Joint Bookrunners.
EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC) and First Abu Dhabi Bank PJSC have been appointed as Joint Bookrunners.
Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Islamic Bank PJSC, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank PJSC and Mashreq Bank have also been appointed as Receiving Banks.