Dubai’s transport regulator, Dubai Taxi Corporation, is seeking to raise nearly $300 million from an IPO on the local bourse next month, according to media reports.
The taxi operator planned to pay a dividend of at least US$19 million for the fourth quarter of 2023 in April as part of the initial public offering (IPO), Bloomberg reported.
Dubai Taxi will pay nearly 85% of its annual net profit in two dividend payments from 2024, the report said.
The Roads and Transport Authority is working with Bank of America Corp., Citigroup Inc., and Emirates NBD Capital on the offering, which will be listed on the Dubai Stock Exchange.
The government secured $1 billion from an IPO of road-toll operator Salik Co. in 2022.
An IPO of Dubai Parking will likely follow the taxi business listing, according to reporters.
Dubai users are concerned about whether the privatization of the Dubai Taxi will affect the fares or not.
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