May 26, 2024

Dubai Taxi Company sucessfully completes bookbuild for IPO raising AED 1.2 billion with global offering 130 times oversubscribed

 Dubai Taxi Company sucessfully completes bookbuild for IPO raising AED 1.2 billion with global offering 130 times oversubscribed

Dubai Taxi Company PJSC (DTC), a leading provider of comprehensive mobility solutions in Dubai, today announces the successful completion of the bookbuild and public subscription process for its initial public offering (IPO) on the Dubai Financial Market (DFM).

The final price for the Offering (the “Final Offer Price”) has been set at AED 1.85, at the top end of the previously announced Offer Price Range, resulting in an Offering size of around AED 1.2 billion (equivalent to approximately US$ 315 million). The Company and the Selling Shareholder confirm the previously announced Offering size consisting of a total of 624,750,000 shares, equivalent to 24.99% of DTC’s total issued share capital.

The Offering saw tremendous demand from international and regional institutional investors and retail investors in the UAE, with total demand for the Offering amounting to over AED 150 billion (equivalent to approximately US$ 41 billion), implying an oversubscription level of 130 times in aggregate. This represents the highest oversubscription level achieved by an IPO on the DFM.

The IPO will result in total gross proceeds of around AED 1.2 billion (equivalent to approximately US$ 315 million) being paid to the Department of Finance representing the Government of Dubai (the “Selling Shareholder”), after adjusting for any expenses related to the Offering.

DTC believes the Final Offer Price per share provides investors with a highly attractive value proposition that reflects DTC’s growth trajectory and compelling investment story, which combines strong macro fundamentals, dominant market share and an attractive financial profile, along with the Selling Shareholder’s long-term confidence in the vision and growth of Dubai.

Mansoor R. Alfalasi, Chief Executive Officer, Dubai Taxi Company, said:“The exceptionally strong demand for the IPO, which was 130 times oversubscribed, 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. 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. We are also proud to support Dubai’s privatization programme, with overwhelming investor interest and our significant oversubscription levels reflecting strong confidence in Dubai and supporting the further expansion of the Dubai Financial Market.”

Based on the Final Offer Price, DTC’s market capitalization upon listing is expected to be approximately AED 4.6 billion (equivalent to approximately US$ 1.26 billion). Following the completion of DTC’s IPO, the Department of Finance, representing the Government of Dubai, will continue to own 75.01% of DTC’s share capital.

Investors who subscribed through the First Tranche (the “UAE Retail Offering”) will receive an SMS confirmation of their respective allocation on Tuesday 5th December 2023, with refunds due to commence from the same date.

The completion of the Offering and Admission is currently expected to take place on 7th December 2023, under the symbol “DTC” and ISIN “AEE01356D236”, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.

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.

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