Dubai Taxi Company (DTC) shares soared as they listed on the Dubai Financial Market on Thursday, rising 19.459 per cent during the day to close at Dh2.21.
DTC was the highest traded share both in terms of value and volumes. A total of 113,021,176 shares changed hands, with a value of Dh246,634,380.19, according to DFM data.
The offering saw significant demand from international and regional institutional investors and retail investors in the UAE, with total demand amounting to over Dh150 billion (equivalent to approximately $41 billion), implying an oversubscription level of 130 times in aggregate. This represents the highest oversubscription level achieved by an IPO on the DFM.
DTC’s successful listing, which marks the second DFM listing in 2023, emphasizes the strength of Dubai’s capital markets and cements the DFM’s integral position in Dubai’s strategic vision for the development of its economy.
Abdul Muhsen Ibrahim Kalbat, chairman, board of directors, DTC, and Mansoor Rahma Alfalasi, chief executive officer, DTC, rang the DFM market opening bell to celebrate the listing, in the presence of Helal Al Marri, chairman of DFM, and Hamed Ali, CEO of DFM and Nasdaq Dubai, alongside several other officials.
Shares began trading under the symbol “DTC”, concluding the Company’s successful public offering that raised around Dh1.2 billion with a market capitalisation of Dh4.6 billion on admission and a final offer price of Dh1.85. The DFM applied no price limits on the shares during the first day of trading.
Al Marri said: “Today’s listing is a pivotal step in Dubai’s robust capital market development. DTC’s success reinforces our diversification strategy, showcasing the strength of Dubai’s economy and investor confidence. Aligned with Dubai Economic Agenda ‘D33’ goals, the DFM continues to drive Dubai’s economic growth story, positioning the city as a global capital hub.”
Ali said: “DTC’s listing marks a significant stride in our journey, DFM has maintained a steadfast momentum in trading activities on the DFM throughout the year, with new equity listings amounting to Dh12.3 billion, reflecting the attractiveness of our markets to investors. As Dubai evolves into a leading global economic hub, DTC’s IPO underscores our commitment to fostering robust capital markets and accelerating new listings. Beyond its immediate impact on economic growth, this listing serves to reaffirm the DFM’s pivotal role as the pre-eminent exchange in the region, offering diverse opportunities and facilitating companies to participate in the vitality of Dubai’s financial ecosystem.”
Kalbat said: “Our record-breaking listing on the DFM marks a major milestone in DTC’s journey, as we continue to play a critical role in developing Dubai’s world-class mobility infrastructure and sustainability vision. We feel proud in saying that DTC is the first mobility company to be listed on DFM, whilst also supporting the emirate’s ongoing privatization program, with our IPO attracting significant investment into Dubai’s capital markets and further strengthening the DFM’s position as a leading regional bourse.”
Alfalasi said: “The record-breaking demand for DTC’s IPO, which was 130 times oversubscribed, reflects the strength of our investment proposition as Dubai’s largest mobility company. We’re proud to join DFM at an exciting time for Dubai, with the emirate benefiting from impressive economic, population and tourism growth. With a strategy that capitalizes on Dubai’s stellar growth prospects, we are in a strong position to deliver value to our new and existing shareholders, as we invest in the latest technologies and continue our expansion across Dubai and into neighbouring emirates.”
During the first nine months of 2023, the DFM General Index gained 24.8 per cent and the total trading value on the DFM rose to Dh78 billion. The DFM investor base of more than a million boasts more than 200 nationalities, thus highlighting the DFM’s global appeal as a thriving financial ecosystem.