Dubai Taxi Company PJSC (DTC) has set the price range for its offer shares between AED1.80 ($0.49) and AED1.85 per share and announced the start of subscription for its AED1.16 billion ($315 million) initial public offering (IPO) on DFM.
The offer price range implies a market capitalisation at time of listing of between AED4.5 billion and AED4.6 billion ($1.2 billion).
A total of 624,750,000 shares, equivalent to 24.99% of DTC’s total issued share capital, will be offered in the offer.
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 is expected to close on November 28, 2023 for UAE retail investors and on November 29, 2023 for qualified investors.
The final offer price will be determined through a book building process and is expected to be announced on November 30, 2023.
The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has issued a Shariah pronouncement confirming that, in its view, the Offering is compliant with Shariah principles.
Admission of the shares to trading on the DFM is expected to take effect on December 7, 2023.
Mansoor R Alfalasi, Chief Executive Officer, Dubai Taxi Company, said: “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, including more than 5,200 ‘red-roof’ taxis, and a robust financial profile with consistent topline growth and margin expansion. DTC is at the heart of Dubai’s mobility vision, with the IPO the next important chapter in our journey.”
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.
Lead Receiving Bank
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.
The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has issued pronouncements confirming that, in its view, the Offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the Offering is Shariah compliant for their own purposes.--TradeArabia News Service