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DUBAI / WAM
Dubai Taxi Company announced on Monday its intention to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
In a statement on Monday, the company said that 624,750,000 shares, each with a nominal value of AED0.04, will be made available in the offering, representing 24.99% of Dubai Taxi Company’s (DTC) total issued share capital.
It added that all shares to be offered are existing shares held by the Department ofFinance for the Government of Dubai as the selling shareholder. The offering will be made available to the UAE Retail Investors and other investors as part of the UAE retail offering and professional investors outside the US, including the UAE, as part of the qualified investor offering.
The subscription period will open on November 21, and end on the November 28 for the UAE retail investors and November 29 for professional investors. The final offer price will be determined by applying a book-building process.
The share capital of the company, as at the date of the listing, has been set at AED100,000,000 divided into 2,500,000,000 shares paid-in-full, with the nominal value of each Share being AED0.04. Following the offering, and starting from the fiscal year 2024, the company intends to pay dividends twice each year in April and October.
In addition, regarding the financial performance of the fourth quarter of 2023, the company expects to distribute a first dividend of at least AED71 million to be paid in April 2024. For the fiscal year 2024 and the years thereafter, an earnings-linked framework with a minimum of 85% of annual net profit will be made available for distribution for the relevant period.
The dividend policy is designed to reflect the company’s expectation of strong cash flows and expected long-term earnings potential, while allowing the company to retain sufficient capital to fund ongoing operating requirements and continued investment for long-term growth.
The dividend policy is subject to consideration by the Board of Directors on an annual basis in relation to the cash management requirements of the company’s business for operating expenses, finance costs, and anticipated capital expenditures and investments.
In addition, the company expects that the board will also, on an annual basis consider market conditions, the current operating environment in the company’s markets, and the board’s outlook for the company’s business and growth opportunities.
Abdul Muhsen Ibrahim Kalbat, Chairman of the Board of Directors of Dubai Taxi Company, said, “Thanks to the wise leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, Dubai continues to demonstrate its commitment to growing world-class businesses and strengthening its robust capital markets.”
“Through this offering, DTC is proud to support the continuation of the privatisation programme pursued by the emirate of Dubai, providing a further opportunity for foreign investment and fostering a culture of world-leading innovation and industry.”