Dubai Taxi Company (DTC) shares jumped by 19.5 percent in its first trading session on the Dubai Financial Market. The stock closed at AED2.21, compared to the opening price of AED1.85. Yesterday, the Dubai Financial Market welcomed the successful listing of DTC, a mobility solutions provider in Dubai, which is the second Initial Public Offering (IPO) and listing this year on the Dubai Financial Market so far.
Groundbreaking investments
DTC witnessed great demand from institutional and individual investors in the United Arab Emirates (UAE). The total demand for offerings reached more than AED150 billion, or about $41 billion. These numbers exceeded the expected offering benchmark by 130 times. Thus, it is considered the largest public offering for an IPO on the Dubai Financial Market ever.
This confirms the strength of the investment offer presented by DTC. Hence, investors are very confident in the company’s growth strategy. Moreover, Dubai is distinguished by its strong capital markets, which enhances its position within Dubai’s ambitious strategic vision to develop its economy.
Attraction of DTC
Mansour Rahma Alfalasi, CEO of DTC, stated that the demand for DTC offerings in the Dubai market is a complete indication that the company is attractive for investment. It derives its strength from the strength of Dubai and the growth in the number of tourists and population. He highlighted that DTC’s market share is 44 percent. This confirms its attractiveness to investors, whether participating in the IPO or wishing to trade the stock on a daily basis.
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Dividend distribution
Regarding dividend distributions, Falasi explained that DTC benefits from the growth in Dubai. The announced distribution policy stipulates the distribution of profits for the last quarter of 2023, next April, of no less than AED71 million. Next October, the distributions for the first half of 2024 will be 85 percent of the net profit.
DTC stated that it achieved an increase in its profits in the first three quarters of the year by nearly 100 percent. Hence, it recorded AED267 million, while its revenues increased by 11 percent to AED1.415 billion.
Dubai Financial Market
Notably, the Dubai Financial Market Index achieved gains of 24.8 percent in the first nine months of 2023. The total trading value rose to AED78 billion in that same period of 2023.
Moreover, the investor base in the Dubai Financial Market reached more than one million investors from over 200 countries. This underscores the global appeal of the Dubai Financial Market and its importance as a thriving financial system in the region.
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