Dubai Taxi Company increases shares allocated to retail investors in its initial public offering

Dubai Taxi Company on Tuesday announced an increase in the number of shares offered in the UAE retail offer of its initial public offering in response to significant oversubscription of the UAE retail offer.

Following the approval of the Securities and Exchange Authority, the UAE retail offer has been increased to 74,970,000 ordinary shares from 62,475,000 ordinary shares. Based on the previously announced price range of Dh1.80 and Dh1.85 per share, the size of the retail tranche will now be between approximately Dh135 million and Dh139 million, representing a total of 12 per cent of the offer shares, compared to 10 per cent previously announced.

The offering size remains unchanged at 624,750,000 ordinary shares, which represents 24.99 per cent of the company’s total issued share capital. Following the increased allocation to the UAE retail offer, the qualified investor tranche will be allocated 549,780,000 ordinary shares, instead of 562,275,000 ordinary shares, representing 88 per cent of the offer shares, compared to 90 per cent previously announced.

The Internal Shariah 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.