Dubai’s RTA seeks about $300 million from taxi IPO

Dubai: 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 privatisation 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 Dh71 million ($19 million) in April, according to an investor presentation seen by Bloomberg. After that, Dubai Taxi will pay at least 85 per cent 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 monetising 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 privatisation drives.