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10/30/23, 6:00 PM Dubai’s RTA Seeks About $300 Million From Taxi IPO - BNN Bloomberg
Dubai’s RTA Seeks About $300 Million From Taxi

IPO

Archana Narayanan and Julia Fioretti, Bloomberg News

Dubai Roads and Transport Authority (RTA) taxis wait for passengers outside a metro station in the downtown district of Dubai, United Arab Emirates, on
Tuesday, Aug. 8, 2023. Dubai’s Roads & Transport Authority has selected Bank of America Corp., Citigroup Inc., and Emirates NBD Capital to work on
the planned initial public offering of the city’s taxi business, in what would be the emirate’s first privatization of the year, whilst the government plans to
sell shares in the parking unit next year, Bloomberg News reported last month. Photographer: Christopher Pike/Bloomberg , Bloomberg

(Bloomberg) -- Dubai Taxi Corp., a unit of the emirate’s transport authority, is seeking to raise about $300
million from a share sale next month in what’s set to be city’s first privatization of the year, according to
people with knowledge of the matter.

As part of the initial public offering, the taxi operator plans to pay a fourth-quarter dividend of at least 71
million dirhams ($19 million) in April, according to an investor presentation seen by Bloomberg. After that,
Dubai Taxi will pay at least 85% of its annual net profit in two dividend payments from the 2024 fiscal
year, the presentation shows.

Dubai’s Roads & Transport Authority is working with Bank of America Corp., Citigroup Inc., and Emirates
NBD Capital on the offering that will list in Dubai, Bloomberg News has previously reported.

A representative for the RTA didn’t respond to a request for comment.

The RTA is monetizing more of its assets after its owner, the Dubai government, raised $1 billion from an
IPO of the city’s road-toll operator, Salik Co., in 2022. An IPO of Dubai Parking is expected to follow the
taxi business listing.

The Middle East has been in the midst of an IPO boom since late 2021, buoyed by high oil prices and
government privatization drives. But activity in Dubai, in particular, has slowed from a blockbuster 2022
after a decline in some regional stock markets in the first half.

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