Dubai Taxi Company (DTC) has announced its initial public offering (IPO) has raised AED 1.2 billion, after the share price was set at AED 1.85, the top end of the previously announced range.
It means DTC’s market capitalisation upon listing is expected to be approximately AED 4.6 billion. Following the completion of DTC’s IPO, the Department of Finance, representing the Government of Dubai (the "Selling Shareholder"), will continue to own 75.01 per cent of DTC’s share capital.
The Company and the Selling Shareholder confirmed the previously announced Offering size consisting of a total of 624,750,000 shares, equivalent to 24.99 per cent of DTC’s total issued share capital.
Applications from international and regional institutional investors and retail investors in the UAE, were valued at over AED150 billion, implying the sale was oversubscribed by 130 times - the highest over-subscription level achieved by an IPO on the DFM.
The IPO will result in total gross proceeds of around AED 1.2 billion being paid to the Department of Finance representing the Government of Dubai, after adjusting for any expenses related to the Offering.
Investors who subscribed through the First Tranche, “UAE Retail Offering”, will receive an SMS confirmation of their respective allocation on December 5, with refunds due to commence from the same date.
The completion of the Offering and Admission is currently expected to take place on December 7, under the symbol “DTC” and ISIN “AEE01356D236”, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.
The DTC’s Initial Public Offering is now closed.— DTC (@DTCUAE) November 29, 2023
The final offering price has been set at AED 1.85. The subscription attracted significant demand, exceeding over AED 150 billion, and marking an oversubscription value of more than 130 times.#DubaiTaxiPJSC#DubaiTaxiShares#IPO pic.twitter.com/6MM7mpVOcj