Dubai Taxi’s AED 1.2 Billion IPO Triumph

Roads & Transport Authority (RTA) and Dubai Taxi Company (Dubai Taxi) have successfully executed the initial public offering (IPO) and subsequent listing of Dubai Taxi on the Dubai Financial Market (DFM). This development is part of Dubai’s strategic asset privatization program, marking the fourth major IPO in the last 12 months under the Dubai Government’s initiative. 

The IPO raised approximately AED 1.2 billion (equivalent to approximately US$326 million), which implied a market capitalization of AED 4.6 billion (equivalent to approximately US$1.25 billion). 

The IPO comprises an offering of 24.99% of the share capital of Dubai Taxi by way of a secondary sell down by the DOF (with no primary raise) with net proceeds of c.US$315m, and a market cap of c.US$1.26bn based on the IPO offer price. The IPO was 130 times oversubscribed, the highest oversubscription level ever for a Dubai IPO on the DFM, demonstrating very strong investor demand. Dubai Taxi continues the active IPO market in the UAE over the last 24 months. 

The underwriters were Bank of America, Citibank and Emirates NBD as Joint Global Coordinators and EFG and First Abu Dhabi Bank as Joint Bookrunners. 

The IPO of Dubai Taxi continues the Dubai Government’s significant asset privatisation programme by way of IPO over the last 12 months (with others being the public utility, Dubai Electricity and Water Company (DEWA), the road tolling business, Salik and the infrastructure cooling utility, Empower). Dubai Taxi is also the second asset being floated by the RTA, following Salik last year. 

The Advisors 

Allen & Overy has advised the Roads & Transport Authority (RTA) and Dubai Taxi Company (Dubai Taxi) on the initial public offering and listing of Dubai Taxi on the Dubai Financial Market (DFM). 

The A&O team was led by UAE based partner Khalid Garousha and counsel Harsha Kumar, with London based US securities partner Jeff Hendrickson, supported by a cross border team including: 

UAE (Corporate): Faisal Buali (Senior Associate), Malek Zreiqat (Senior Associate) and Eugene Bang (Associate). 

London: Carolyn Slauson Ali (Senior Associate, USCF), Valerio Di Mascio (Associate, USCF), Adithyan Sreekumar (Associate, CO), Yolanda Borquaye (Associate, USCF), Victoria Sigle (Associate, USCF) and Katherine Hu (US Law Clerk, USCF). 

UAE (Banking): Samer Eido (Partner), Joe Riches (Senior Associate), Nadeen Haddadin (Associate) and Nour Gemayel

Clifford Chance has acted as underwriters’ counsel in relation to Dubai Taxi Company on its initial public offering (IPO) and listing on the Dubai Financial Market (DFM). 

The cross-border team was led by Dubai ECM partner Mike Taylor, with support from a core team in Dubai and London, including: 

Dubai: senior associate Rezwan Azam and associates Massimiliano Valli and Ismaila Ngum 

London: partner Chris Roe, senior associate Anjaneya Das and associate Ines Teixeira 

London US team: partner Drew Rundus and lawyers Jake DuCharme, Rachel Sumption and Geoffrey Adonu and trainee solicitor Asher Mohammed