Dubai Taxi Company PJSC announced the price range for the sale of its shares, start of the subscription period for its initial public offering

The beginning of the subscription period for Dubai Taxi Company PJSC's initial public offering (IPO also known as the "Offering") and the price range for the sale of the company's shares (also known as the "Offer Price Range") were announced on DFM. The Company is a prominent supplier of all-inclusive mobility solutions in Dubai.

AED 1.80 to AED 1.85 per share has been established as the offering's pricing range. The estimated total offering size ranges from AED 1,125 million (roughly US$ 306 million) to AED 1,156 million (roughly US$ 315 million). This suggests a market capitalization of between AED 4.5 billion (roughly US$ 1,225 million) and AED 4.6 billion (roughly US$ 1,259 million) at the time of listing. It is anticipated that the ultimate offer price will be disclosed on November 30,

Key Highlights:

 • AED 4.5 billion to AED 4.6 billion (about US$ 1.2 billion) is the estimated market capitalization at the time of listing based on the offer price range of AED 1.80 to AED 1.85 per share.

• 624,750,000 shares in total, or 24.99% of DTC's total issued shared capital, will be offered.

• The Department of Finance for the Government of Dubai is the selling shareholder (sometimes known as the "selling shareholder") of all the shares that are going to be offered. 

• The initial public offering (IPO) subscription period will begin today and is anticipated to end on November 28, 2023, for retail investors in the United Arab Emirates, and November 29, 2023, for qualified investors (as described below).

• The book building process will decide the ultimate offer price, which is anticipated to be revealed on November 30, 2023.

• The Emirates NBD Bank PJSC's Internal Sharia Supervision Committee has confirmed in a Shariah declaration that the Offering complies with Shariah standards. 

• The shares are anticipated to be admitted to trade on the DFM on December 7, 2023.

 

Offer Price Range:

AED 1.80 to AED 1.85 per share has been determined as the offering's price range. The estimated total offering size ranges from AED 1,125 million (roughly US$ 306 million) to AED 1,156 million (roughly US$ 315 million). This suggests a market capitalization of between AED 4.5 billion (roughly US$ 1,225 million) and AED 4.6 billion (roughly US$ 1,259 million) at the time of listing. It is anticipated that the ultimate offer price will be disclosed on November 30, 2023.

There will be an offering of 624,750,000 ordinary shares in total, which represents 24.99% of DTC's entire issued share capital. Every share that will be put up for sale is an existing stake that the Dubai government's Department of Finance is holding.

 

Subscription:

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

• public offering (the "UAE Retail Offering") to investors in the UAE as well as other investors in the UAE (as described in the UAE prospectus and referred to as "First Tranche" subscribers) 

• An offering made in accordance with the Exemption Offer (the "Qualified Investor Offering," also known as "Second Tranche" subscribers in the UAE prospectus) and based on Regulation S of 1933 (as amended) to professional investors and other investors in a number of countries, including the UAE.

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 percent of the Offering will be reserved for offer to the Emirates Investment Authority (the “EIA”); and 

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

Starting today, the IPO subscription period will continue for UAE Retail Investors until November 28, 2023, and for Qualified Investors until November 29. 

 

As of now, it is anticipated that the Offering and Admission will be completed on December 7, 2023, subject to market circumstances and the acquisition of all necessary regulatory licences in the United Arab Emirates, including approval of Admission to list and trade on the DFM. 

The UAE Prospectus for the UAE Retail Offering and the English-language International Offering Memorandum for the Qualified Investor Offering include information on the Offering. The website has the International Offering Memorandum and the UAE Prospectus. Additionally, 800 ENBD IPO (3623 476) is the number of the specialised IPO call centre.

The Independent Financial Advisor will be Rothschild & Co Middle East Limited.

The Joint Global Coordinators and Joint Bookrunners are Citigroup Global Markets Limited, Emirates NBD Capital PJSC, and Merrill Lynch International.

Joint bookrunners First Abu Dhabi Bank PJSC and EFG-Hermes UAE Limited (operating in concert with EFG Hermes UAE LLC) have been named.

Designated as the Lead Receiving Bank is Emirates NBD Bank PJSC. The following banks have also been designated as Receiving Banks: First Abu Dhabi Bank PJSC, Abu Dhabi Islamic Bank PJSC, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, and Mashreq Bank.

The Emirates NBD Bank PJSC's Internal Sharia Supervision Committee has declared in official statements that it believes the Offering complies with Shariah laws. To make sure the Offering complies with Shariah for their needs, investors should conduct their own due diligence.