RIYADH: Dubai Taxi Co. hit a record high for its 1.2 billion dirhams ($315 million) initial public offering, with orders exceeding 150 billion dirhams by local and international investors.
The final offer price for the provider of comprehensive mobility solutions was set at 1.85 dirhams per share, leading to a total of 624.75 million shares, equivalent to 24.99 percent of DTC’s total issued share capital.
The announcement that followed the completion of the book building and public subscription process on the Dubai Financial Market highlighted that based on the final offer price, the company’s market capitalization upon listing is expected to be approximately 4.6 billion dirhams.
The total demand implied “an oversubscription level of 130 times in aggregate,” which “represents the highest oversubscription level achieved by an IPO on the DFM.”
Mansoor Al-Falasi, DTC’s CEO, said: “The exceptionally strong demand for the IPO reflects the high-quality investment opportunity provided by DTC, anchored in Dubai’s robust economic, population and tourism growth and world-leading mobility and sustainability vision.”
He added: “With DTC’s own growth accelerating, enabled by the continued expansion of our market-leading fleet, ongoing investment in the latest technologies and our expansion across Dubai and into neighboring emirates, this is an exciting time for DTC and our new investors.”
According to the DTC, the total gross proceeds of the IPO will be paid to the Department of Finance representing the Government of Dubai after adjusting for any expenses related to the offering.
The department will continue to own 75 percent of DTC’s share capital following the completion of the IPO, with the offering and admission expected to take place on Dec. 7, subject to approvals.
DTC was established in 1994 and currently holds 44 percent of the market share. As of June 2023, it operated more than 7,000 vehicles and managed a workforce of more than 14,000 driver partners. The company is considered to be the largest taxi operator in Dubai.