Dubai Taxi to offer 24.99% of shares for initial public offering
Dubai Taxi Company (DIC) today announced the price range for the IPO shares and the start of the IPO period for the initial public offering on the Dubai Financial Market (DFM), with 624.75 million shares to be offered for public subscription, representing 24.99% of the total issued shares in the company's capital.
The company said in a statement today that the price range for the offer shares has been set between AED 1.80 and AED 1.85 per share, which means that the company's market capitalization at listing will range between AED 4.5 billion and AED 4.6 billion (approximately $ 1.2 billion), and all shares to be offered will be existing shares owned by the Department of Finance of the Government of Dubai in its capacity as a selling shareholder.
The subscription period starts today and lasts until 28 November 2023 for retail investors, and until 29 November 2023 for eligible investors, and the final offer price will be determined through the book-building process, and is expected to be announced on 30 November 2023.
The offering and acceptance of listing are expected to close on 7 December 2023, subject to market conditions and subject to obtaining relevant regulatory approvals in the UAE, including approval for listing and trading on the DFM.
Mansoor Rahma Al Falasi, CEO of Dubai Taxi Company, said: "We are pleased to announce the commencement of the subscription period for the initial public offering of Dubai Taxi Company shares to all qualified investors and individual investors in the UAE.
He added that the company's announcement of its intention to list its shares on the stock market last week has received great attention, reflecting the strong investment opportunities provided by Dubai Taxi Company with great growth expectations supported by the company's fleet of more than 7,000 vehicles, including more than 5,200 taxis, in addition to its strong financial results with steady growth rates and significant expansion in margins, pointing out that Dubai Taxi is an essential part of the vision of growth, mobility and sustainability in Dubai, and is considered The IPO is an important step with which the company writes a new chapter in its success story.
The Offered Shares will be available to the tranches of subscribers, namely: a public offering "Retail Investor Offering" to individuals and other investors in the UAE, as defined in the UAE prospectus referred to as the "First Tranche", and an offering to professional investors and other investors in a number of countries outside the United States of America, including the UAE, in accordance with Regulation "RegS" of the U.S. Securities Act (the "Qualified Investor Offering" referred to in the prospectus). in the UAE with subscribers of the "second tranche").
As part of the QI offering, and in accordance with the Companies Law and Dubai Law, 5% of the offer shares will be reserved to the Emirates Investment Authority and 5% of the offer shares will be reserved to the Pension and Social Security Fund for local military personnel.
Rothschild & Partners Middle East Limited has been appointed as independent financial advisor, Citigroup Global Markets Limited, Emirates NBD Capital PSC and Merrill Lynch International have been appointed as joint global coordinators and bookrunners, EFG Hermes UAE Limited (jointly with EFG Hermes UAE) and First Abu Dhabi Bank has been appointed as joint managers, while Emirates NBD PJSC has been appointed as the lead receiving bank.
Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank and Mashreq Bank have also been designated as receiving banks.