EFG: Hermes Completes Advice on Dubai Taxi Company's $315 Million IPO on DFM – December 7, 2023 at 2:21 am EST
EFG Hermes completes advice on Dubai Taxi Company's $315 million IPO on DFM
The transaction marks the company's eighth IPO advisory in the GCC region in 2023.
Dubai, December 7, 2023
EFG Hermes, the leading investment bank in frontier and emerging markets (FEM), today announced that its investment banking division has advised on the $315 million initial public offering (IPO) of Dubai Taxi Company (DTC), a leading provider of US Dollar has successfully completed comprehensive mobility solutions in Dubai, on the Dubai Financial Market (DFM). EFG Hermes acted as joint bookrunner for the transaction.
DTC offered a total of 24.99% of its total issued share capital through the sale of 624,750,000 existing shares at AED 1.85 per share – representing a market capitalization of AED 4.6 billion (US$ 1.26 billion).
The IPO attracted strong demand for shares from local, regional and international investors worth AED150 billion (US$41 billion), with the total book covered at around 130x. The company began trading today under the ticker symbol DTC.
Mostafa Gad, Head of Investment Banking at EFG Hermes, commented: “We are proud to be part of the DTC IPO on DFM and its resounding success. Leveraging our extensive experience in transformative transactions, this venture not only reinforces our commitment to contributing to the UAE.” But the growing equity market activity also underlines our strategic growth in the region. DTC's evolution from a pioneering taxi service to a versatile mobility solutions provider reflects its adaptability and market resilience, largely reflected in the strong demand for its offering. Our team's commitment and our track record in high-profile IPOs strengthen our role as a trusted advisor in market-determining transactions. This IPO represents another milestone in our series of impactful deals in the GCC region, cementing our position as a leading investment bank in frontier and emerging markets. We expect DTC to continue to thrive as it embarks on this new chapter as a public company.”
Dubai Taxi Company PJSC stands out as a leading provider of comprehensive mobility solutions in Dubai. As of June 30, 2023, DTC has a significant market share of 44% in the taxi fleet, cementing its position as the leading taxi operator in Dubai. In contrast, DTC's closest competitor holds a 22% market share. Founded in 1994 as a taxi company, Dubai Taxi Company has strategically expanded beyond its original scope, benefiting from its dominant leadership in the taxi sector and operational capabilities. The company has a diverse portfolio that includes taxi services with a focus on an eco-friendly fleet, luxury VIP limousine services, bus services for school and business routes, and last-mile delivery services using delivery bikes.
The transaction marks EFG Hermes' eighth IPO advisory role this year and is the latest in a series of landmark deals the firm has advised on in the GCC region over the years, including most recently advising on the IPO of OQ Gas Networks on the Muscat Stock Exchange (MSX), the largest Omani IPO in over two decades. It also advised on the IPO of ADES Holding Company on the Saudi Exchange and the successful IPOs of ADNOC L&S and ADNOC Gas Plc on the Abu Dhabi Securities Exchange (ADX); Lumi Rental Company IPO on the Saudi Exchange; Abraj Energy Services on MSX; and Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).
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About EFG Holding
EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a pioneering financial institution with a track record spanning over 40 years in 11 countries on four continents. Across its three verticals – Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance) and Commercial Bank (aiBANK) – the company offers markets a holistic portfolio of groundbreaking financial products and services that serve a growing business Base of individual customers and companies of all sizes.
EFG Hermes is the leading investment banking firm in Frontier and Emerging Markets (FEM), offering a wide range of financial services including advisory, asset management, securities brokerage, research and private equity. In our home market, EFG Holding is a universal bank with the fastest growing NBFI platform EFG Finance, which includes microfinance provider Tanmeyah, leasing and factoring service provider EFG Corp-Solutions, universal financial technology company Valu and digital payments platform PayTabs Egypt. Bedaya for mortgage financing and Kaf for insurance. In addition, the company offers commercial banking solutions through aiBANK, a leading provider of integrated personal, corporate and Islamic banking products in Egypt.
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Find out more about us at www.efghldg.com
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Note Regarding Forward-Looking Statements
In this press release, EFG Holding may make forward-looking statements, including, for example, statements regarding management's expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts, but rather EFG Holding's belief regarding future events, many of which are inherently uncertain and beyond management's control and include, among other things, the volatility of financial markets; actions and initiatives of current and potential competitors; general economic conditions and the impact of current, upcoming and future laws, regulations and governmental actions. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
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