Dubai Taxi Company makes good first impression on DFM - stock up 17% in 5 minutes

Dubai: The Dubai Taxi Company had an immediate pick up on its first day of trading, with the stock gaining nearly 18 per cent to Dh2.18. The IPO price was Dh1.85.

That Dubai's latest DFM listing would have a jump start was a foregone conclusion. All that investors will want to know is how much it will go up by across the first day. Salik, which listed last year, had a 20 per cent uptick opening day. (At the time of listing, the company's market cap was Dh4.6 billion.)

The traded numbers in the first few minutes were impressive enough - just over 28,000 shares were traded within the first 15 minutes and racking up Dh64 million. Impressive indeed...

"There are retail investors piling into the DTC stock and build on the holdings they got post-subscription," said a trader. "Each investor got a minimum 2,000 shares each - and there was always going to be a real appetite to add more. That's what's happening Day 1 of trading.

"DTC represents a value proposition in the UAE's transportation space (just as Salik does) and that's what investors are getting into."

The IPO offered 24.99 per cent in the company, and DTC also raised the allotment for retail investors as well.

At the time of closing out its IPO - which should also be the final one from a Dubai entity this year - Mansoor Alfalasi, the CEO of Dubai Taxi Co. said: "This is an exciting time for DTC and our new investors. We are also proud to support Dubai’s privatization programme, with overwhelming investor interest and our significant oversubscription levels reflecting strong confidence in Dubai and supporting the further expansion of the Dubai Financial Market."

DTC commands a 44 per cent share of the Dubai taxi market, with a fleet of 7,000 vehicles. But the company has plans to add to the mobility solutions to keep the growth meter ticking. 

"DTC’s evolution from a pioneering taxi service to a multifaceted mobility solutions provider reflects its adaptability and market resilience, widely reflected in the robust demand received for the offering from a diverse set of investors," said Mostafa Gad, Head of Investment Banking at EFG Hermes, which had an advisory role in the IPO.