Dubai: Ahead of a potential initial public offering (IPO), Dubai Taxi will become a joint stock company after a law was issued to that effect on Sunday. It was also approved for its shares to be offered publicly and subscribed when they are issued.
His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President of and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, issued a law transforming Dubai Taxi into a joint stock company.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, issued the council’s resolution No.93 of 2023 on approving the statute of Dubai Taxi Company and offering its shares for public subscription.
The resolution approves the articles of association of Dubai Taxi Company PJSC, including the rules and provisions, including offering the company's shares for public subscription, in accordance with the percentages determined by the emirate’s Executive Council.
It also identifies the company's purposes and terms of reference, the mechanisms for appointing and electing its board of directors, and other rules governing the company's work.
Board of Directors
Sheikh Hamdan also issued the council’s resolution No. 92 of 2023 forming the board of directors of Dubai Taxi Company under the chairmanship of Abdul Mohsen Ibrahim Younis.
Ahmed Ali Al Kaabi is the Vice Chairman, while Shehab Hamad Bushahab, Yousef Ahmed bin Ghalaita, Dr. Hanan Suleiman Al Suwaidi, Abdullah Mohammed bin Damithan, and Issa Abdullah bin Natuf, will serve as members.
According to the law, Dubai Taxi Company replaces Dubai Taxi Corporation in all laws in force in the emirate and exercises all the powers vested in the Corporation under such legislation.
All rights, assets, funds, tangible and intangible assets and privileges, as well as obligations, guarantees and undertakings belonging to the Corporation, whether inside or outside the emirate, will be transferred to the Dubai Taxi Company.
The law also stipulates that all assets, rights and liabilities that will devolve to the company in its name or in the name of any company owned or affiliated thereof shall be transferred in accordance with the legislation in force in the emirate.
The purposes of the company include practicing the activity of transport by taxis, in accordance with the legislation in force in the Emirate, whether through the transit trip, communication, electronic media or smart applications, practicing the activity of specialized transport by self-driving vehicles and air vehicles in accordance with the legislation in force, renting vehicles, whether with or without a driver, providing services for the supply and provision of drivers, practicing the activity of renting bicycles to companies transporting goods, in addition to the purposes specified in the company's articles of association.
Bloomberg had reported last month, citing informed sources, that Dubai Taxi plans to raise nearly $300 million from its listing on the local bourse next month. An IPO of Dubai Parking will likely follow the taxi business listing, Bloomberg further noted.
The IPO plans are in line with Dubai revealing plans a year earlier to list 10 state-owned companies to increase the size of its financial market to Dh3 trillion, as well as set up a Dh2 billion market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail. The government raised $1 billion from an IPO of Salik Co. in 2022, an offering that was also preceded by first establishing the road-toll operator as a public joint stock company before floating its shares to the public.