Dubai’s Roads and Transport Authority (RTA) is revving up stock market activity with its Dubai Taxi IPO. This strategic move marks the beginning of a new phase for the taxi business as the RTA invites investment banks to pitch for roles in the forthcoming IPO.
Dubai Taxi IPO Targeted Window
The RTA is steering towards a December or January launch for the Dubai Taxi IPO, accelerating its privatisation efforts.
Strategic Asset Review
To optimize its assets, the RTA has partnered with Rothschild & Co to conduct a comprehensive review, encompassing its taxi and public parking businesses.
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Nol Card Exploration
In addition to the IPO, the RTA is exploring potential IPOs for its widely-used Nol card, often utilized for public transport payments. Dubai lender Emirates NBD may play a pivotal role in this exploration.
Recent Success and Government Privatisation
Last year, the RTA’s IPO of its toll-road business, Salik, created waves by raising $1 billion, offering a 24.9% stake and attracting orders worth $50 billion. This new IPO initiative is in line with Dubai’s commitment to amplify stock market activity and support state-linked companies through privatisation.
Dubai’s IPO market has been on a remarkable ascent, amassing nearly $8.5 billion from five IPOs within the past year. Dubai’s goal to list 10 state-linked companies has been instrumental in boosting stock market activity in the region, with these IPOs contributing over half of the total funds raised in the broader Europe, Middle East, and Africa region.
What Lies Ahead:
While the official IPO timeline is yet to be disclosed by the RTA, the initiation of the Dubai Taxi IPO underscores the authority’s dedication to enhancing its assets. This development is closely monitored by the financial and transportation sectors, and further updates on the Dubai Taxi IPO are eagerly anticipated. Stay tuned for more information as this significant development unfolds.
