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Dubai: Dubai Taxi Company will be offering 624.75 million shares – making up 24.99 per cent of its capital – in what is likely to be a bumper IPO, with the share price range to be announced November 21. Subscription will also be opening the same day. (The selling shareholder has the right to raise size of the offering prior to the end of the subscription period.)
Retail investors will have access to 10 per cent of the issue size, representing 62.47 million shares. The minimum subscription has been set at Dh5,000 and in increments of Dh1,000 thereafter, according to an ad placed in local media.
Each subscriber to the first tranche will be guaranteed a minimum allocation of 2,000 shares.
The second tranche, meant for professional investors, will have 562.27 million shares to aspire to. (Bloomberg had earlier reported about Dubai Taxi Co’s IPO plans and onboarding of banks to get the process started.)
DFM’s blockbuster year
The DFM has been the best performing stock market in the Gulf year-to-date, gaining nearly 20%. Even with the volatility induced after October 7’s Israel-Gaza crisis, the market – as well as those in the Gulf – have been fairly resilient.
Key dates for IPO
After opening the subscription November 21, investors in the first tranche have until November 28 to apply, while those aiming for the second tranche allotments have until November 29. The shares are to list on Dubai Financial Market December 7.
Dubai Taxi thus represents the second opportunity for investors – retail and institutional – to access the growth possibilities in the emirate’s transportation sector. The toll-gate operator Salik was the first.
The company has a claimed 44 per cent share of the local market (in terms of fleet size). The next biggest player’s share is 22 per cent.
According to the prospectus ad, Dubai Taxi made 44 million trips between July 1, 2022 and June 30, 2023. The company operates more than 7,000 vehicles, with 5,216 being taxis and the others limousines.)
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