Dubai Taxi Company Announces Share Allocation Date After Record IPO Demand

Asma - | UAE

 Dubai Taxi Company, fully owned by the Dubai Government's Department of Finance, has scheduled December 5, 2023, to announce the allocation of shares from its initial public offering's (IPO) first tranche. The IPO witnessed an overwhelming response, with unprecedented demand from both local and international investors.

Record-breaking Demand for Dubai Taxi Company's IPO

During the subscription period's last day on November 28, the company responded to robust demand by raising the share allocation for individual investors in the UAE from 62.47 million ordinary shares to 74.97 million, constituting 12% of the total offering shares, surpassing the initially announced 10%.

Offering Price and Financial Implications

With the original pricing range already established, Dubai Taxi Company set the final offering price at 1.85 dirhams. The Department of Finance will use the estimated 1.2 billion dirhams, or around $315 million, that the IPO will bring in to pay for any costs that may arise after the settlement.

Unprecedented investor demand

The IPO was a huge success, with demand exceeding the goal value by more than 130 times and reaching over 150 billion UAE dirhams (about $41 billion) from investors throughout the world. The reaction was so high that it surpassed all previous initial public offerings (IPOs) on the Dubai Financial Market.

Individual and professional investor responses

Local investors demonstrated strong interest, with individual investors contributing over 13 billion dirhams. The segment's orders exceeded 94 times, reflecting the widespread enthusiasm among individual investors. Professional investors, including international entities, subscribed approximately 135 times to the offered shares.

Trading Commencement and Market Value

Dubai Taxi Company shares are expected to commence trading on December 7, 2023, under the symbol "DTC" on the Dubai Financial Market. The company's estimated market value upon listing is approximately AED 4.6 billion (about $1.26 billion).

Post-IPO Government Ownership

As a further demonstration of its dedication to Dubai Taxi Company's future success, the Department of Finance will retain a 75.01% ownership position in the company when the IPO closes.

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