UAE News

Dubai Taxi Embarks on IPO Journey Following Government Approval

Dubai Taxi, previously a government entity, has received approval from His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai, to transform into a public joint stock company.

This move is part of the Dubai government’s broader strategy to increase liquidity in the equity market and boost market capitalization post-pandemic.

Dubai Taxi IPO in the Pipeline:

The imminent initial public offering (IPO) by Dubai Taxi marks a significant development in the series of public offerings initiated by the Dubai government. 

The decision to list 10 entities on the Dubai Financial Market (DFM) aims to strengthen the market and contribute to the government’s goal of reaching a market capitalization of Dh3 trillion.

Dubai’s Post-Pandemic Public Offerings:

Several government-backed entities, including Dubai Electricity and Water Authority (Dewa), toll gate operator Salik, Tecom Group, and district cooling company Empower, have already gone public and listed their shares on the local bourse. 

These offerings witnessed overwhelming demand from retail and institutional investors, often oversubscribed multiple times.

Details Yet to be Disclosed:

While the government decree regarding Dubai Taxi’s transformation into a public joint stock company has been approved, specific details about the timing and extent of the IPO remain undisclosed. 

The move aligns with the government’s broader plan to utilize the IPO route to enhance liquidity and potentially list more companies in the coming years.

Leadership and Governance Structure:

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, has approved Executive Council Resolution No. (93) of 2023, outlining Dubai Taxi Company’s Articles of Association, including bylaws and regulations. 

Abdul Mohsin Ibrahim Younis has been appointed chairman, with Ahmed Ali Al Kaabi serving as vice chairman. Board members include Shehab Hamad Abu Shehab, Youssef Ahmed bin Ghalaita, Dr. Hanan Sulaiman Al Suwaidi, Abdulla Mohammed bin Damithan, and Issa Abdullah bin Natouf. 

This leadership structure is crucial as Dubai Taxi transitions into a publicly traded entity.

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