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Dubai Taxi to launch IPO as Sheikh Mohammed issues new law – News

Published: Sunday, November 12, 2023, 9:10 p.m.

Last update: Sunday, November 12, 2023, 9:35 p.m.

Dubai Taxi will sell shares through an initial public offering (IPO) after the Government of Dubai converted it into a public limited company.

In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, on Sunday approved Law No. (21) of 2023 concerning the ‘Dubai Taxi Company’ .

The Dubai Taxi IPO is part of a series of public offerings launched by Dubai government entities after the pandemic. The government had announced the listing of 10 entities in the Dubai Financial Market (DFM) to increase liquidity in the stock market and increase the stock market’s market capitalization to Dh3 trillion.

So far, utility provider Dubai Electricity and Water Authority (Dewa), toll operator Salik, Tecom Group and district cooling company Empower have gone public and listed their shares on the local bourse. All government-backed entities that went public witnessed overwhelming demand from retail and institutional investors, who oversubscribed multiple times.

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The decree on Dubai Taxi, however, did not reveal when and how much of Dubai Taxi’s shares were to be listed on the Dubai Stock Exchange. As part of the government’s 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 Dubai Executive Council, also approved Council Resolution No. (93) of 2023 on the statutes of the ‘Dubai Taxi Company’, including the statutes and regulations.

Sheikh Hamdan also approved Executive Council Resolution No. (92) of 2023, appointing Abdul Mohsin Ibrahim Younis as President, and Ahmed Ali Al Kaabi as Vice President. 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 flying and autonomous taxi services

The law allows the transport company to exercise its activities and objectives with financial and administrative independence.

The law also establishes that the duration of the company is 99 years, from the date of its registration in the commercial register according to the laws in force in the emirate. It is automatically renewable for a similar period.

Apart from providing taxi transportation services, Dubai Taxi will also offer specialized transportation using autonomous vehicles and flying taxi services. In addition, the company is engaged in the rental of vehicles with or without drivers, the rental of bicycles for freight transport companies and other purposes described in the company’s statutes.

In addition, Dubai Taxi may subcontract passenger transportation services through contractual agreements with other companies.

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