Dubai Taxi will sell shares through an IPO after it being converted into a public joint stock company

After being reorganised by the Dubai government as a public joint stock company, Dubai Taxi will sell shares through an IPO. Sunday saw the approval of Law No. (21) of 2023, which relates to the "Dubai Taxi Company," by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, in his position as the Ruler of Dubai.

The Dubai government issued a number of initial public offerings (IPOs) following the outbreak, including the Dubai Taxi IPO. The government had said that it will list ten companies on the Dubai Financial Market (DFM) in an effort to improve stock market liquidity and raise the market capitalization of the exchange to Dh3 trillion.

To date, Tecom Group, Dubai Electricity and Water Authority (Dewa), Empower, a district cooling firm, Salik, a toll gate operator has all gone public and placed their shares on the market. The tremendous demand from institutional and ordinary investors resulted in repeated oversubscriptions for all government-backed firms that went public.

However, the Dubai Taxi order was silent on the timing and number of shares that were to be offered on the Dubai Exchange. In the upcoming years, more firms are expected to go through the IPO process as part of the government's strategy to boost liquidity.

Additionally, the Council's Resolution No. (93) of 2023 on the "Dubai Taxi Company's" Articles of Association, comprising the bylaws and regulations, was authorised by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai.

Sheikh Hamdan gave his approval to the Executive Council Resolution No. (92) of 2023, which designates Ahmed Ali Al Kaabi as vice chairman and Abdul Mohsin Ibrahim Younis as chairman. Shehab Hamad Abu Shehab, Dr. Hanan Sulaiman Al Suwaidi, Youssef Ahmed bin Ghalaita, Abdulla Mohammed bin Damithan, and Issa Abdullah bin Natouf are among the other board members. The statute permits the transport firm to pursue its goals and objectives while maintaining its financial and administrative independence.

According to the legislation, the firm has 99 years from the date of its registration in the commercial register, by the rules currently in effect in the emirate. It automatically renews for an equivalent amount of time.

Dubai Taxi will provide specialist transportation utilising self-driving cars and flying taxi services in addition to taxi transportation services. In addition, the firm leases motorcycles to freight transportation companies, leases cars with or without drivers, and pursues additional goals specified in the company's articles of incorporation. Dubai Taxi also has the option to contract with other businesses to outsource its passenger transportation services.