With a sizable growing interest in the investors for a longer time duration, the Dubai Taxi Company, (DTC) has fixed a price range share of Dh1.8 to Dh1.85 for IPO with a subscription opening from November 21, 2023.

Dubai Taxi Company has buoyed up by its equity of  24.99 percent, and the finalized offer price is set to be announced by November 30, 2023. The Dh1.8 to Dh1.85 range of share sets DTC (Direct to Consumer) up to a rise somewhere between Dh1.12 billion and  Dh1.16 billion. The same even implies the DTC to have an evaluation worth Dh 4.5 billion to Dh 4.62 billion. According to all the bankers and traders, this issue has been over-subscribed within the very first 60 minutes.

According to the company, it is also expected to start the trading list on the Dubai Financial Market by December 7.

The Chief Executive of Dubai Taxi Company, Mansoor R Alfalasi said, “We are delighted to open the subscription period for the Dubai Taxi Company IPO to all professional investors and retail investors in the UAE.”

“We have seen strong interest in the IPO since announcing our intention to float last week, reflecting DTC’s compelling investment story which combines strong market fundamentals and an attractive growth opportunity powered by our fleet of over 7,000 vehicles, including more than 5,200 ‘red-roof’ taxis, and a robust financial profile with consistent topline growth and margin expansion,” he further added.

Earlier, the Dubai Taxi Company announced that the company is going to issue a dividend of Dh 71 by April 2024, which will also be the payout amount for the Q4 operations of 2023. Subsequently, the annual contribution going to be 85 percent, which is equal to a minimum of the net profit.

“The DTC IPO – and the demand that we have already witnessed for it – highlights the continuing successful privatization drive in the UAE,” said the Managing Director of Global Capital Partners, Mr. Sameer Lakhani.

“The enthusiasm of local, regional, and international investors to participate in the vibrancy of the capital markets. Given RTA’s success with Salik – whose stock has been up more than 57 percent since its DFM listing – investors are looking forward to the near-perfect combination of a strong dividend policy and the growth of Dubai,” he further added. (The IPO price was fixed at a share of Dh2by Shalik)

In the previous nine months, starting from January to September, the net profit of the Dubai Taxi Company was Dh267 million (compared to last year, which was Dh134 million) from Dh1.41 billion (Dh1.27 billion in 9 months 2022).

“The dividend policy is designed to reflect the company’s expectation of strong cash flows and expected long-term earnings potential while allowing the company to retain sufficient capital to fund ongoing operating requirements and continued investment for long-term growth,” the Dubai Taxi company said.

The proceedings from the IPO will help to consolidate the status of the market leaders and will fasten the expansion in the United Arab Emirates. The contributional return would work around the mark of 5 percent.

The IPO is surely going to be an immediate sellout and will not surprise anyone. All the details that the retail investors are looking for will be there if there is any upsizing of the offer. The analysts have suggested that it might be a ‘live possibility’ given the interest level of all the small and big investors.

All the banks have been filled with an endless number of requests for lending by investors who want to be a part of the IPO. every subscriber can claim a minimum share of 2,000. But that would not be anywhere near enough to sharpen the need.

The general index of the Dubai Financial Market has been in a rush throughout the current year, and the recent few weeks have displayed that even through the extreme situation, the investors did not get skittery in the wider part of the Middle Eastern region.

PureHealth in Abu Dhabi,  the biggest healthcare entity in the United Arab Emirates, has made an announcement that it is expected to be public by December 2023, and this is going to be a super blockbuster IPO, for anyone who looks at it.

Now the question arises of whether there will be other IPO offerings in the United Arab Emirates. Even without the upcoming one, the Dubai Taxi Company and PureHealth issues have generated endless buzz to close them off in 2023 as a high priority for the stock market of the United Arab Emirates.