Dubai Taxi breaks records with $41 bn in orders for $315 mn IPO
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According to Bloomberg, the IPO, Dubai's first privatisation in over a year, received overwhelming interest, with the institutional investor tranche nearly 135 times oversubscribed.
Dubai Taxi Co. has set a record for investor demand in its $315 million initial public offering (IPO), securing over 150 billion dirhams ($41 billion) in orders, marking the highest oversubscription level ever for a Dubai IPO.
According to Bloomberg, the IPO, Dubai's first privatisation in over a year, received overwhelming interest, with the institutional investor tranche nearly 135 times oversubscribed. The government of Dubai sold a 25 per cent stake, amounting to 624.75 million shares, at 1.85 dirhams each, the top end of the marketed range, valuing Dubai Taxi at 4.62 billion dirhams. Trading is set to commence on December 7.
This demand for Dubai Taxi's IPO highlights the stark contrast between the thriving listings market in the Gulf region and the subdued global sentiment, marked by challenges such as high interest rates and market volatility over the past two years. The Gulf region, buoyed by elevated oil prices, robust local investor demand, and government initiatives to list state-owned companies, has become a hotspot for IPOs.
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Dubai, in particular, has outperformed, with its benchmark index surging 20 per cent this year, driven by a rise in property-related shares.
The investor demand for Dubai Taxi's IPO contributes to the Gulf's standout performance in listings this year, with approximately $8.4 billion raised through IPOs in the region, accounting for over a third of the total listing volumes in Europe, the Middle East, and Africa.
Dubai's success in raising $8.3 billion through stake sales in state-owned companies in 2022 underscores its commitment to listing state-owned entities, aligning with similar initiatives in Abu Dhabi and Riyadh. Dubai Taxi marks the city's second IPO of 2023, following the successful listing of Al Ansari Financial Services PJSC in March.
Citigroup Inc., Emirates NBD Capital, and Bank of America Corp. are serving as joint global coordinators for the IPO, with Rothschild & Co. acting as an independent financial adviser.
(With inputs from Bloomberg)
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