Dubai Taxi Company Share Allocation Announcement Date Revealed
On Tuesday, December 5, 2023, Dubai Taxi Company, a wholly-owned subsidiary of the Department of Finance of the Government of Dubai, will disclose the distribution of shares to buyers in the first tranche of the public offering.
Shares Allocation Announcement
Participants will receive allocation notifications on this date, marking a significant development in the company's journey towards becoming publicly traded.
Increased Individual Investor Participation
The company responded to a high level of demand on November 28, the last day of subscription for the first tranche, from individual investors in the United Arab Emirates. Instead of receiving 62.47 million shares as in the past, individual investors now receive 74.97 million ordinary shares, or 12% of the total offering shares. This surge, above the previously announced 10% allocation rate, clearly indicates the strong interest from individual investors.
Offering Price Determination
At 1.85 dirhams, the upper limit of the initially disclosed price range, Dubai Taxi Company set the final offering price for its initial public offering on the Dubai Financial Market after finalizing the subscription order book.
Record-Breaking Demand
The public offering witnessed an unprecedented demand, exceeding 150 billion UAE dirhams (approximately 41 billion dollars) from a diverse range of investors, both local and international. The overall subscription level surpassed the target value by an astonishing 130 times, making it the most substantial demand ever recorded for an IPO on the Dubai Financial Market.
Global and Local Investor Enthusiasm
Professional investors globally demonstrated overwhelming interest, with subscription requests surpassing the subscription volume by approximately 135 times. Locally, the response was equally impressive, as individual investors' demand exceeded 13 billion dirhams, with orders exceeding 94 times the increased share allocation.
Trading Commencement and Market Valuation
On Thursday, December 7, 2023, it is expected that shares of Dubai Taxi Company will begin trading on the Dubai Financial Market, which will trade under the ticker symbol "DTC." The projected market value of the company over listing, taking into account the final offering price, is roughly AED 4.6 billion, or roughly $1.26 billion.Government Retains Majority Stake
The Department of Finance of the Dubai government will retain a 75.01 percent ownership stake in the business after the IPO is over, demonstrating its kept going significant control over Dubai Taxi Company's operations.
