Dubai, UAE — Dubai Taxi Company Monday announced its intention to proceed with an Initial Public Offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
In a statement on Monday, the company said that 624.750 million shares, each with a nominal value of AED0.04, will be made available in the offering, representing 24.99 percent of Dubai Taxi Company’s (DTC) total issued share capital.
It added that all shares to be offered are existing shares held by the Department of Finance for the Government of Dubai as the selling shareholder.
The Offering will be made available to the UAE Retail Investors and other investors as part of the UAE Retail Offering and professional investors outside the US, including the UAE, as part of the Qualified Investor Offering.
The subscription period will open on 21st November, and end on the 28th November for the UAE retail investors and 29th November for Professional Investors. The Final Offer Price will be determined by applying a book-building process.
The share capital of the company, as at the date of the listing, has been set at AED100 million divided into 2.5 billion shares paid-in-full, with the nominal value of each share being AED0.04. Following the Offering, and starting from the fiscal year 2024, the company intends to pay dividends twice each year in April and October.
In addition, regarding the financial performance of the fourth quarter of 2023, the company expects to distribute a first dividend of at least AED71 million to be paid in April 2024. For the fiscal year 2024 and the years thereafter, an earnings-linked framework with a minimum of 85 percent of annual net profit will be made available for distribution for the relevant period.
Abdul Muhsen Ibrahim Kalbat, Chairman of the Board of Directors of Dubai Taxi Company, said, “Through this offering, DTC is proud to support the continuation of the privatization programme pursued by the Emirate of Dubai, providing a further opportunity for foreign investment and fostering a culture of world-leading innovation and industry.”
Five percent of the Offering will be reserved for the offer to the Emirates Investment Authority, and five percent will be reserved for the offer to the Pensions and Social Security Fund of Local Military Personnel.