Dubai Taxi will sell shares through an initial public offering (IPO) after it was converted into a public joint stock company by the Government of Dubai.
In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, approved Law No. (21) of 2023 pertaining to ‘Dubai Taxi Company’ on Sunday.
Dubai Taxi IPO is part of a series of public offerings launched by the Dubai government entities after the pandemic. The government had announced to list 10 entities on the Dubai Financial Market (DFM) to increase liquidity in the equity market and boost the bourse’s market capitalisation to Dh3 trillion
Till now, utility services provider Dubai Electricity and Water Authority (Dewa), toll gate operator Salik, Tecom Group and district cooling company Empower have gone public and listed their shares on the local bourse. All the government-backed entities that went public witnessed an overwhelming demand from both retail and institutional investors, oversubscribed multiple times.
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The decree about Dubai Taxi, however, didn’t disclose when and how much of Dubai Taxi’s shares were to be floated on the Dubai bourse. As part of the government plan to increase liquidity, it is estimated that more companies will take the IPO route in the coming years.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, also approved the Council’s Resolution No. (93) of 2023 on ‘Dubai Taxi Company’s’ Articles of Association including the bylaws and regulations.
Sheikh Hamdan also approved the Executive Council Resolution No. (92) of 2023, appointing Abdul Mohsin Ibrahim Younis as chairman, and Ahmed Ali Al Kaabi serves as vice chairman. Other board members include Shehab Hamad Abu Shehab, Youssef Ahmed bin Ghalaita, Dr. Hanan Sulaiman Al Suwaidi, Abdulla Mohammed bin Damithan, and Issa Abdullah bin Natouf.
Offering self-driving, flying taxi services
The law allows the transport company with financial and administrative independence to pursue its activities and objectives.
The law also outlines that the company’s duration is 99 years, starting from the date of its registration in the commercial register as per the prevailing laws in the emirate. It is automatically renewable for a similar period.
In addition to providing transportation services for taxis, Dubai Taxi will also offer specialised transportation using self-driving vehicles and flying taxi services. Furthermore, the company is involved in leasing vehicles with or without drivers, engaging in leasing bikes for cargo transportation companies and pursuing other purposes outlined in the company’s articles.
Moreover, Dubai Taxi can outsource passenger transportation services through contractual agreements with other companies.