Dubai Taxi Co. Set for IPO as Dubai Revives Privatization Efforts

Dubai Taxi Co. Set for IPO as Dubai Revives Privatization Efforts

VoM News Desk | November 13, 2023 | 09:07 PM IST | Breaking News | Follow on Google News

Dubai Taxi Co. Set for IPO as Dubai Revives Privatization Efforts

Dubai Taxi Co. Set for IPO as Dubai Revives Privatization Efforts

Dubai has resumed its privatization program with the announcement of an initial public offering (IPO) for Dubai Taxi Co., marking a significant move in the United Arab Emirates’ thriving share sale market as 2023 draws to a close.

Details of the Dubai Taxi IPO

The Dubai government plans to sell a 25% stake in Dubai Taxi Co., translating to 624.75 million shares. The pricing range will be revealed on November 21, with the subscription period closing on November 29 for institutional investors and a day earlier for retail buyers. Trading of these shares is expected to commence on December 7.

Potential Raise and Market Impact

This IPO could potentially raise about $300 million, according to Bloomberg News. This move follows Dubai’s successful $8.3 billion fundraising from selling stakes in four state-owned enterprises in 2022. The initiative is part of Dubai’s broader strategy to list 10 state-owned companies to invigorate the local market and compete with IPO trends in neighboring regions like Abu Dhabi and Riyadh.

Regional IPO Landscape and Dubai’s Market Resilience

Despite a global downturn in IPO volumes and regional tensions, including the war between Israel and Hamas, the Middle East remains a bright spot for listings. In 2023, the region saw IPO transactions totaling $7.9 billion, although this marked a 54% drop from the previous year. Dubai’s benchmark index has outperformed Gulf markets, rising nearly 19% this year, buoyed by a surge in property shares.

Dubai Taxi’s Market Position and Future Prospects

As the largest taxi operator in Dubai with a 44% market share, Dubai Taxi Co. stands to benefit from the city’s growing popularity as a post-Covid haven. The influx of expatriates and the UAE’s plans to attract millions more in the coming decades are expected to drive the company’s growth.

VoM News Desk

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