Dubai Taxi Corp., a unit of the emirate’s transport authority, is seeking to raise about $300 million from a share sale next month in what’s set to be city’s first privatization of the year, according to people with knowledge of the matter.
As part of the initial public offering, the taxi operator plans to pay a fourth-quarter dividend of at least 71 million dirhams ($19 million) in April, according to an investor presentation seen by Bloomberg. After that, Dubai Taxi will pay at least 85% of its annual net profit in two dividend payments from the 2024 fiscal year, the presentation shows.
Dubai’s Roads & Transport Authority is working with Bank of America Corp., Citigroup Inc., and Emirates NBD Capital on the offering that will list in Dubai, Bloomberg News has previously reported.
A representative for the RTA didn’t respond to a request for comment.
The RTA is monetizing more of its assets after its owner, the Dubai government, raised $1 billion from an IPO of the city’s road-toll operator, Salik Co., in 2022. An IPO of Dubai Parking is expected to follow the taxi business listing.
The Middle East has been in the midst of an IPO boom since late 2021, buoyed by high oil prices and government privatization drives. But activity in Dubai, in particular, has slowed from a blockbuster 2022 after a decline in some regional stock markets in the first half.
