Dubai Taxi Corp., under the Roads & Transport Authority's (RTA) supervision, is gearing up for a $300 million share sale, setting in motion Dubai's first privatisation initiative of 2023. This follows the Dubai government's successful $1 billion initial public offering (IPO) through road-toll operator Salik Co. in 2022.
The IPO will include a significant fourth-quarter dividend of at least Dh71 million ($19 million), scheduled for disbursal in April. Additionally, the company pledges to distribute biannual dividends starting from fiscal year 2024, which will constitute no less than 85% of its annual net profit.
The RTA, together with Bank of America Corp (NYSE:BAC)., Citigroup Inc (NYSE:C)., and Emirates NBD Capital, are leading this substantial offering. This move aligns with the RTA's asset monetization strategy, reflecting its successful execution with Salik Co.'s IPO.
This development comes amidst a surge in IPO activities in the Middle East, fueled by high oil prices and ongoing privatisation efforts. Following the listing of Dubai Taxi Corp., another IPO for Dubai Parking is expected to be announced soon.
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