Dubai Taxi is set to go public through an initial public offering (IPO) following its transformation into a public joint stock company by the Dubai Government.
Dubai Taxi, a prominent transportation provider in the emirate, is preparing to launch an initial public offering (IPO) after being converted into a public joint stock company by the Government of Dubai. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, approved Law No. (21) of 2023 concerning the ‘Dubai Taxi Company.’
The move to convert Dubai Taxi into a public joint stock company and eventually launch an IPO is part of a broader initiative by the Dubai government to enhance liquidity in the equity market and boost the market capitalization of the Dubai Financial Market (DFM) to Dh3 trillion. Several government entities have already gone public and listed their shares on the DFM, including Dubai Electricity and Water Authority (Dewa), Salik (toll gate operator), Tecom Group, and Empower (district cooling company). These IPOs have witnessed substantial demand from both retail and institutional investors, often oversubscribed multiple times.
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The decree issued by Sheikh Mohammed did not specify the timing or the extent of Dubai Taxi’s shares to be floated on the stock exchange. Nevertheless, it is expected that more government-owned entities will pursue the IPO route in the coming years as part of the government’s initiative to increase market liquidity.
Additionally, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, approved the Council’s Resolution No. (93) of 2023 concerning the ‘Dubai Taxi Company’s’ Articles of Association, including the bylaws and regulations.
Dubai Taxi’s transition into a public joint stock company with financial and administrative independence will allow it to expand its services, which include providing transportation services for taxis, specialized transportation using self-driving vehicles, and flying taxi services. The company will also offer vehicle leasing services with or without drivers, as well as bike leasing services for cargo transportation companies, among other purposes outlined in its articles. Dubai Taxi may also engage in passenger transportation services through contractual agreements with other companies.
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The move to take Dubai Taxi public reflects the broader transformation and diversification efforts in the UAE, aiming to expand the role of the private sector in the economy and increase participation from local and international investors.
