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16 January 2024

Dubai Taxi Initiates IPO, Unveiling Promising Investment Opportunity in the Market

By E247

Dubai Taxi has announced the launch of its Initial Public Offering (IPO) today, initiating a significant opportunity for investors. The subscription window for individual investors spans from today until the 28th of this month, while professional investors have until the 29th of November to participate.

The IPO offers a substantial 624.75 million shares, constituting 24.99% of the company's total issued shares. The precise offering price will be determined through a book-building process, with the anticipation of finalizing the pricing ahead of the listing. Trading is slated to commence on the Dubai Financial Market in December, following the completion of the listing process.

With an initial capital of 100 million dirhams divided into 2.5 billion fully paid shares valued at 0.04 dirhams each, the company is poised for a robust market entry.

Post-IPO, Dubai Taxi plans to institute a dividend distribution strategy, aiming to pay dividends twice yearly, in April and October, starting from the fiscal year 2024. The interim dividend distribution is forecasted to exceed 71 million dirhams for the fourth quarter of 2023, indicating a commitment to shareholder returns.

Financially, the company has demonstrated commendable growth, reporting a 31.4% increase in revenue for the year ending December 31, 2022, reaching 1.76 billion dirhams—an impressive surge from 2019 levels and a significant leap from the previous year's 1.34 billion dirhams. Profits for the same period soared by 50%, reaching 224.37 million dirhams, showcasing the company's robust financial performance.

In the initial 9 months of the fiscal year, Dubai Taxi sustained its growth trajectory with an 11.1% increase in revenues, amounting to 1.41 billion dirhams. This consistent upward trend solidifies the company's position as a promising investment opportunity in the market.