Dubai Taxi Company shares surge on DFM debut

The shares of Dubai Taxi Company surged nearly 19 per cent above the listing price of Dh1.85 per share on Thursday as the company made its debut on the Dubai Financial Market.

The company, which started trading under the ticker symbol “DTC”, jumped to Dh2.20 in early trading on the DFM, giving it a market value of more than Dh5.42 billion ($1.48 billion).

DTC was the highest traded share both in terms of value and volumes. A total of 113,021,176 shares changed hands, with a value of Dh246,634,380.19, according to DFM data.

The offering saw significant demand from international and regional institutional investors and retail investors in the UAE, with total demand amounting to over Dh150 billion (equivalent to approximately $41 billion), implying an oversubscription level of 130 times in aggregate. This represents the highest oversubscription level achieved by an IPO on the DFM.

DTC’s successful listing, which marks the second DFM listing in 2023, emphasizes the strength of Dubai’s capital markets and cements the DFM’s integral position in Dubai’s strategic vision for the development of its economy.

Abdul Muhsen Ibrahim Kalbat, chairman, board of directors, DTC, and Mansoor Rahma Alfalasi, chief executive officer, DTC, rang the DFM market opening bell to celebrate the listing, in the presence of Helal Al Marri, chairman of DFM, and Hamed Ali, CEO of DFM and Nasdaq Dubai, alongside several other officials.

Shares began trading under the symbol “DTC”, concluding the Company’s successful public offering that raised around Dh1.2 billion with a market capitalisation of Dh4.6 billion on admission and a final offer price of Dh1.85. The DFM applied no price limits on the shares during the first day of trading.

"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',he added.