IPO: Dubai Taxi Company shares surge over 19% on first day of trading

Dubai Taxi Company (DTC) - which had received over 150 billion dirhams ($41 billion) in investor orders for its $315 million IPO, a record for the city - began trading on the Dubai Financial Market (DFM) on Thursday. As the market closed, shares were up 19.45%.

“DTC’s successful listing, which marks the second DFM listing in 2023, emphasises the strength of Dubai’s capital markets and cements the DFM’s integral position in Dubai’s strategic vision for the development of its economy,” read a statement by the Dubai government released on Thursday.

Shares began trading under the symbol “DTC”, concluding the company’s public offering with a market capitalsation of $1.26 billion on admission and a final offer price of AED 1.85. The DFM applied no price limits on the shares during the first day of trading.

DTC’s CEO Mansoor Rahma Alfalasi and chairman of its board of directors Abdul Muhsen Ibrahim Kalbat rang the market opening bell to celebrate the listing, in the presence of His Excellency Helal Al Marri, DFM’s chairman.

Alfalasi said: “The record-breaking demand for DTC’s IPO, which was 130 times oversubscribed, reflects the strength of our investment proposition as Dubai’s largest mobility company.”

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“With a strategy that capitalises on Dubai’s stellar growth prospects, we are in a strong position to deliver value to our new and existing shareholders, as we invest in the latest technologies and continue our expansion across Dubai and into neighbouring emirates,” he added.

Meanwhile HE Al Marri said: “We warmly welcome Dubai Taxi to the DFM.”

Describing the listing as a “pivotal step in Dubai’s robust capital market development”, he said its success “reinforces our diversification strategy, showcasing the strength of Dubai’s economy and investor confidence.

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“Aligned with Dubai Economic Agenda D33 goals, the DFM continues to drive Dubai’s economic growth story, positioning the city as a global capital hub,” he added.

As per the statement, the offering saw significant demand from international and regional institutional investors and retail investors in the UAE.

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The DFM investor base of more than a million boasts more than 200 nationalities, thus highlighting the DFM’s global appeal as a thriving financial ecosystem.

Dubai’s top taxi operator

DTC operates a fleet of more than 7,000 vehicles in Dubai. It was established in 1994 and has since expanded to offer a range of mobility solutions across four key business lines: taxis, VIP limousines, buses and last mile delivery bike services.

It is considered the number one taxi operator by fleet size in Dubai with an approximately 44% market share as at 30 June 2023. In the 12 months to 30 June 2023, the Company’s taxis and limousines made 44 million trips, 42 million of which were taxi trips, according to the DFM website.