EFG Hermes, a leading investment bank in Frontier and Emerging Markets (FEM), has announced the successful completion of its advisory role in the $315m initial public offering (IPO) of Dubai Taxi Company (DTC) on the Dubai Financial Market (DFM). Serving as joint book-runner, EFG Hermes facilitated the offering of 24.99% of DTC’s total issued share capital, translating to 624,750,000 shares at AED 1.85 each and a market capitalization of AED 4.6bn ($1.26bn).
The IPO garnered an overwhelming response, with demand reaching AED 150bn ($41bn) from a diverse pool of local, regional, and international investors, oversubscribing the book by approximately 130 times. DTC commenced trading under the ticker DTC.
Mostafa Gad, Head of Investment Banking at EFG Hermes, expressed pride in contributing to DTC’s successful IPO, highlighting the firm’s role in shaping the UAE’s equity capital market. He praised DTC’s transition from a pioneering taxi service to a versatile mobility solutions provider, a testament to its adaptability and market strength, as evidenced by the robust investor demand.
Gad 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.”
As of June 30, 2023, DTC holds a commanding 44% market share in Dubai’s taxi fleet, outpacing its nearest competitor’s 22% share. Since its inception in 1994, DTC has evolved to offer a broad range of services, including eco-friendly taxis, luxury limousines, bus transportation, and last-mile delivery solutions.
This IPO represents EFG Hermes’ eighth advisory engagement this year and continues its track record of significant transactions in the GCC, including recent advisories on the IPOs of OQ Gas Networks, ADES Holding Company, ADNOC L&S, ADNOC Gas Plc, Lumi Rental Company, Abraj Energy Services, and Al Ansari Financial Services PJSC.
