EFG Hermes, the top-tier investment bank specializing in Frontier and Emerging Markets (FEM), announced the successful completion of its advisory role in the initial public offering (IPO) of Dubai Taxi Company (DTC). The IPO, valued at $315 million, was executed on the Dubai Financial Market (DFM). DTC, a prominent provider of comprehensive mobility solutions in Dubai. EFG Hermes acted as a Joint Bookrunner in this transaction.
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Through the sale of 624,750,000 existing shares at a price of AED1.85 per share, DTC offered a portion of its total issued share capital amounting to 24.99 percent. This resulted in a market capitalization of AED4.6 billion (equivalent to $1.26 billion).
The IPO received an impressive response, with a strong demand of AED150 billion ($41 billion) from local, regional, and international investors. In addition, the total book was oversubscribed by approximately 130 times. As a result, the company commenced trading on DFM under the ticker symbol DTC.
Strategic growth
Mostafa Gad, head of Investment Banking at EFG Hermes commented, “We are proud to be part of DTC’s IPO on the DFM and its resounding success. Leveraging our extensive experience in transformative transactions, this venture not only reaffirms our commitment to contributing to the UAE’s burgeoning equity capital market activity but also underscores our strategic growth in the region. DTC’s evolution from a pioneering taxi service to a multifaceted mobility solutions provider reflects its adaptability and market resilience, which has been widely reflected in the robust demand received for the offering from a diverse set of investors. Our team’s dedication, coupled with our track record in high-profile IPOs, reinforces our role as a trusted advisor in market-defining transactions.”
“This IPO marks another milestone in our series of impactful deals in the GCC region, further solidifying our position as the leading investment bank in Frontier and Emerging Markets. We anticipate continued success for DTC as it embarks on this new chapter as a publicly listed company,” Gad added.
Foremost taxi operator
Dubai Taxi Company PJSC is widely recognized as a leading provider of comprehensive mobility solutions in Dubai. As of June 30, 2023, DTC maintains a significant market share of 44 percent in the taxi fleet industry, firmly establishing itself as the foremost taxi operator in Dubai. In comparison, its closest competitor holds a market share of 22 percent. Originally established in 1994 as a taxi company, DTC has strategically expanded its operations beyond its initial scope by leveraging its dominant position in the taxi sector and operational expertise.
Variety of services
Besides, DTC offers a wide variety of taxi services. The company has successfully ventured into other areas, including an emphasis on maintaining an eco-friendly fleet. Furthermore, DTC offers luxury VIP limousine services, bus services catering to school and commercial routes, and last-mile delivery services facilitated by delivery bikes. Moreover, this strategic expansion enables DTC to provide a comprehensive range of transportation solutions to meet the diverse needs of its customers.
A series of landmark deals
Additionally, EFG Hermes’ involvement in this transaction represents their eighth advisory role on an IPO this year. This transaction is part of a series of significant deals that the firm has advised on in the GCC region over the years. Notably, they recently provided advisory services for the IPO of OQ Gas Networks on the Muscat Stock Exchange (MSX), which was the largest IPO in Oman in over two decades. Also, EFG Hermes advised on the IPO of ADES Holding Company on the Saudi Exchange, as well as the successful IPOs of ADNOC L&S and ADNOC Gas Plc on the Abu Dhabi Securities Exchange (ADX). They were also involved in the IPO of Lumi Rental Company on the Saudi Exchange, Abraj Energy Services on the MSX, and Al Ansari Financial Services PJSC on DFM.
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