(MENAFN) In a significant move to broaden its capital markets, Dubai Taxi Company has embarked on an Initial Public Offering (IPO) on the Dubai Financial Market (DFM), with the ambitious goal of raising up to Dh1.16 billion (USD315 million). Shareholders are offering 624.75 million shares, constituting 24.99 percent of the total issued share capital of the company. The announcement, made on Tuesday, outlined a price range of Dh1.80 to Dh1.85 per share for the public float, with the final offer price set to be revealed on November 30.
The indicative price band places the valuation of Dubai Taxi Company between Dh4.5 billion and Dh4.6 billion at the time of listing. The company anticipates commencement of trading on the DFM on December 7, marking a pivotal moment in its journey toward becoming a publicly traded entity. Mansoor R Alfalasi, the Chief Executive of DTC, expressed confidence in the IPO's success, citing strong interest since the intention to float was announced the previous week.
"DTC is at the heart of Dubai’s mobility vision, with the IPO the next important chapter in our journey," remarked Alfalasi, underscoring the strategic significance of the move within the context of Dubai's overarching vision for transportation and mobility infrastructure.
The subscription period for both retail and institutional investors commenced on Tuesday, with the retail investors' tranche scheduled to conclude on November 28. Qualified institutional investors have until November 29 to participate in the deal. Notably, as part of the offering, 5 percent will be allocated in the first tranche, with the remaining 95 percent earmarked for the second.
This article explores the details of Dubai Taxi Company's IPO, analyzing the motivations behind the listing, the potential impact on the company's valuation, and the broader implications for Dubai's capital markets. As the subscription period unfolds, the article aims to provide insights into investor sentiment and the significance of Dubai Taxi Company's journey towards becoming a publicly traded entity.
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