DUBAI - Investor excitement for Dubai Taxi Co.'s initial public offering (IPO) reached unprecedented levels today, as the company's offering became the most subscribed in the city's history. The IPO attracted bids worth over 150 billion dirhams ($41 billion), a testament to the robust investor confidence in the region despite global market volatility. The offering, which was oversubscribed by 130 times, consisted of a 25% stake in the company priced at a premium of 1.85 dirhams per share. This pricing values the company at 4.62 billion dirhams, with shares poised to begin trading on December 7.
The overwhelming response to the public listing underscores the strong local and international appetite for Gulf listings, which have collectively drawn in about $8.4 billion this year. Dubai Taxi Co.'s record-breaking IPO comes as the city's benchmark index reports a bullish uptick of 20%, largely fueled by the performance of property sector stocks. The trend is in stark contrast to the economic challenges faced globally, including high interest rates and market fluctuations.
The success of Dubai Taxi Co.'s IPO is part of a broader privatization initiative in the region, which has seen significant listings such as the primary water and electricity utility in Dubai. Earlier in the year, Al Ansari Financial Services PJSC also launched a successful IPO in March, raising $210 million. The city's aggressive privatization campaign and the successful public offerings this year highlight the Gulf's emergence as a beacon for IPO activity, bolstered by sustained oil revenues and strong local investment interest.
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