BIMC – My Emirates Company

Dubai to offer 25% stake in taxi business in planned IPO

DUBAI, Nov 13 (Reuters) – 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, as part of a broader privatisation programme of state assets.

Dubai Taxi Company, 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 privatisation plan to list 10 state-linked companies to boost stock market activity, repay debt, and deepen capital markets.

Reuters had earlier reported that Dubai was planning a public share sale of its taxi business in December or January.

Citigroup Global Markets Limited, Emirates NBD Capital, and Merrill Lynch International have been appointed as joint global coordinators and bookrunners, and EFG Hermes UAE and First Abu Dhabi Bank are joint bookrunners on the deal.

Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum had issued a law changing the legal status of the Dubai Taxi Company, previously known as the Dubai Taxi Corporation, into a public joint stock company with financial and administrative independence.