Dubai Taxi company PJSC announces offer price range and start of subscription period for initial public offering

KEY HIGHLIGHTS

•Offer Price Range has been set between AED 1.80 and AED 1.85 per share , implying a market capitalisation at time of listing of between AED 4.5 billion and AED 4.6 billion (c. US$ 1.2 billion)

•A total of 624,750,000 shares, equivalent to 24.99% of DTC’s total issued share capital, will be offered

•All Shares to be offered are existing shares held by the Department of Finance for the Government of Dubai as the selling shareholder (the “Selling Shareholder”)

•The IPO subscription period starts today and is expected to close on 28th November 2023 for UAE Retail Investors and on 29th November 2023 for Qualified Investors (as defined below)

•The final offer price will be determined through a book building process and is expected to be announced on 30th November 2023

•The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has issued a Shariah pronouncement confirming that, in its view, the Offering is compliant with Shariah principles.

•Admission of the shares to trading on the DFM is expected to take effect on 7th December 2023

Mansoor R. Alfalasi, Chief Executive Officer, Dubai Taxi Company, said:

“We are delighted to open the subscription period for the Dubai Taxi Company IPO to all professional investors and retail investors in the UAE. We have seen strong interest in the IPO since announcing our intention to float last week, reflecting DTC’s compelling investment story which combines strong market fundamentals and an attractive growth opportunity powered by our fleet of over 7,000 vehicles, including more than 5,200 ‘red-roof’ taxis, and a robust financial profile with consistent topline growth and margin expansion. DTC is at the heart of Dubai’s mobility vision, with the IPO the next important chapter in our journey.”

DETAILS OF THE OFFER PRICE RANGE

The price range for the Offering has been set between AED 1.80 and AED 1.85 per share. The total Offering size is expected to be between AED 1,125 million (c.US$ 306 million) and AED 1,156 million (c.US$ 315 million), implying a market capitalisation at time of listing of between AED 4.5 billion (c.US$ 1,225 million) and AED 4.6 billion (c.US$ 1,259 million). The final offer price is expected to be announced on 30th November 2023.

A total of 624,750,000 ordinary shares, equivalent to 24.99% of DTC’s total issued share capital, will be offered. All shares to be offered represent the sale of existing shares held by the Department of Finance representing the Government of Dubai. The value of UAE dirhams has been pegged to a US dollar rate of AED 3.6725 per US$1 since 1997. All AED/US$ conversions included herein have been calculated at this rate.

SUBSCRIPTION PROCESS

As previously announced, the Offering is available to the following subscribers:

•A public offering (the “UAE Retail Offering”) to UAE Retail Investors and other investors in the UAE (as defined in the UAE prospectus and referred to as “First Tranche” subscribers) and;

•An offering to professional investors and other investors in a number of countries, including in the UAE, outside the United States of America in reliance on Regulation S of 1933 (as amended) and pursuant to the Exemption Offer (the “Qualified Investor Offering” and as referred to in the UAE prospectus as “Second Tranche” subscribers)

Further, as part of the Qualified Investor Offering, and in accordance with both the UAE Commercial Companies Law and the Dubai Law, the following will apply:

•Five percent of the Offering will be reserved for offer to the Emirates Investment Authority (the “EIA”); and

•Five percent of the Offering will be reserved for offer to the Pensions and Social Security Fund of Local Military Personnel (the “Fund”).

The IPO subscription period starts today and runs until 28st November 2023 for UAE Retail Investors and until 29th November for Qualified Investors.

The completion of the Offering and Admission is currently expected to take place on 7th December 2023, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.

Details of the Offering are available in the UAE Prospectus with respect to the UAE Retail Offering and the English-language International Offering Memorandum with respect to the Qualified Investor Offering. The UAE Prospectus and the International Offering Memorandum are available at https://www.dubaitaxi.ae/en/IPO. There is also a dedicated IPO call centre number: 800 ENBD IPO (3623 476).

Rothschild & Co Middle East Limited has been appointed as the Independent Financial Advisor.

Citigroup Global Markets Limited, Emirates NBD Capital PSC and Merrill Lynch International have been appointed as Joint Global Coordinators and Joint Bookrunners.

EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC) and First Abu Dhabi Bank PJSC have been appointed as Joint Bookrunners.

Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Islamic Bank PJSC, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank PJSC and Mashreq Bank have also been appointed as Receiving Banks.

The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has issued pronouncements confirming that, in its view, the Offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the Offering is Shariah compliant for their own purposes.