Picture used for illustrative purpose only.

In a statement issued  by DTC, the company announced that the Offer Price Range had been set between Dhs1.80 and Dhs1.85 per share, implying a market capitalisation at the time of listing of between Dhs4.5 billion and Dhs4.6 billion ($1.2 billion).

Moreover, the company also declared a total of 624,750,000 shares, equivalent to 24.99% of DTC’s total issued share capital, will be offered. 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 starts on Tuesday and is expected to close on 28th November for UAE Retail Investors and on 29th November for Qualified Investors.

The final offer price will be determined through a book-building process and is expected to be announced on 30th November.

The statement added that the completion of the Offering and Admission is currently expected to take place on 7th December, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.

Speaking on the occasion, Mansoor R. Alfalasi, Chief Executive Officer, DTC, said, “We are delighted to open the subscription period for the Dubai Taxi Company IPO to all professional investors and retail investors in the UAE. 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.”

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.

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 price range for the Offering has been set between Dhs 1.80 and Dhs 1.85 per share. The total Offering size is expected to be between Dhs 1,125 million (c.US$ 306 million) and Dhs 1,156 million (c.US$ 315 million), implying a market capitalisation at time of listing of between Dhs 4.5 billion (c.US$ 1,225 million) and Dhs 4.6 billion (c.US$ 1,259 million). The final offer price is expected to be announced on 30th November 2023.

A total of 624,750,000 ordinary shares, equivalent to 24.99% of DTC’s total issued share capital, will be offered.

All shares to be offered represent the sale of existing shares held by the Department of Finance representing the Government of Dubai.

The value of UAE dirhams has been pegged to a US dollar rate of Dhs 3.6725 per US$1 since 1997. All AED/US$ conversions included herein have been calculated at this rate.

 As previously announced, the Offering is available to the following subscribers:

• A public offering (the “UAE Retail Offering”) to UAE Retail Investors and other investors in the UAE (as defined in the UAE prospectus and referred to as “First Tranche” subscribers) and;

• An offering to professional investors and other investors in a number of countries, including in the UAE, outside the United States of America in reliance on Regulation S of 1933 (as amended) and pursuant to the Exemption Offer (the “Qualified Investor Offering” and as referred to in the UAE prospectus as “Second Tranche” subscribers)

Further, as part of the Qualified Investor Offering, and in accordance with both the UAE Commercial Companies Law and the Dubai Law, the following will apply:

• Five per cent of the Offering will be reserved for offer to the Emirates Investment Authority (the “EIA”); and

• Five per cent of the Offering will be reserved for offer to the Pensions and Social Security Fund of Local Military Personnel (the “Fund”).

The IPO subscription period starts today and runs until 28st November 2023 for UAE Retail Investors and until 29th November for Qualified Investors.

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

WAM