Dubai plans to offer 25% of shares in its taxi business through an initial public offering (IPO), the company said in a statement on Monday, the latest public share sale as part of a broader privatization program of state assets. Dubai Taxi IPO is part of a series of public offerings launched by the Dubai government entities after the pandemic.
In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, approved Law No. (21) of 2023 about ‘Dubai Taxi Company’.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, also approved the Council’s Resolution No. (93) of 2023 on ‘Dubai Taxi Company’s’ Articles of Association including the bylaws and regulations.
Sheikh Hamdan also approved the Executive Council Resolution No. (92) of 2023, appointing Abdul Mohsin Ibrahim Younis as chairman, and Ahmed Ali Al Kaabi serves as vice chairman.
The law allows the transport company with financial and administrative independence to pursue its activities and objectives. The law also outlines that the company’s duration is 99 years, starting from the date of its registration in the commercial register as per the prevailing laws in the emirate. It is automatically renewable for a similar period.
In addition to providing transportation services for taxis, Dubai Taxi will also offer specialized transportation using self-driving vehicles and flying taxi services. Furthermore, the company is involved in leasing vehicles with or without drivers, engaging in leasing bikes for cargo transportation companies, and pursuing other purposes outlined in the company’s articles.
Moreover, Dubai Taxi can outsource passenger transportation services through contractual agreements with other companies.
Dubai Taxi Company (DTC), the largest taxi operator in the Gulf city state by market share, will offer 624.8 million shares, which are expected to list on the Dubai Financial Market in December.
The subscription period for the IPO will run from Nov. 21 to Nov. 28 for retail investors in the United Arab Emirates, and Nov. 29 for other investors, the statement said.
Dubai raised nearly $8.5 billion from five IPOs last year, fuelled by a government plan to list 10 state-linked companies to boost stock market activity, repay debt and deepen capital markets.
