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Dubai Taxi’s IPO marks highest oversubscription level on DFM

Dubai Taxi’s IPO marks highest oversubscription level on DFM
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Dubai – Mubasher: Dubai Taxi Company (DTC), a comprehensive mobility solutions provider, concluded the book-building and public subscription process for its initial public offering (IPO) to list shares on the Dubai Financial Market (DFM).

The final price of the IPO has been set at AED 1.85, resulting in an offering size of around AED 1.20 billion ($315 million), according to a press release.

The offering size includes a total of 624.75 million shares, accounting for 24.99% of DTC’s total issued share capital.

Meanwhile, the total demand for the offering exceeded  AED 150 billion ($41 billion), implying an oversubscription level of 130 times in aggregate. This is considered to be the highest oversubscription level achieved by an IPO on the DFM.

Mansoor R. Alfalasi, CEO of Dubai Taxi, said: “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.”

The market cap is expected to stand at nearly AED 4.60 billion ($1.26 billion) upon listing.

Following the transaction, the Department of Finance, representing the Government of Dubai, will hold 75.01% of DTC’s share capital.

The completion of the offering and admission is currently expected to take place on 7 December 2023, under the symbol “DTC”.

Rothschild & Co Middle East Limited has been appointed as the Independent Financial Advisor.

Citigroup Global Markets Limited, Emirates NBD Capital, and Merrill Lynch International have been named as joint global coordinators and joint bookrunners.

Emirates NBD Bank, Abu Dhabi Islamic Bank (ADIB), Ajman Bank, Commercial Bank of Dubai (CBD), Dubai Islamic Bank (DIB), Emirates Islamic Bank, First Abu Dhabi Bank (FAB), and Mashreq Bank are acting as the receiving Banks.