Dubai Taxi Company shares jumped by 19% in the first minutes of trading on the Dubai Financial Market. The stock started trading at 2.2 dirhams, but reduced its gains compared to the opening price of 1.85 dirhams.
The company attracted subscription requests exceeding 150 billion dirhams ($41 billion) for its public offering of 1.16 billion dirhams, with a coverage rate exceeding 130 times, which is a clear indication of strong investor demand for Gulf IPOs.
The Dubai Taxi stock offering is the first carried out by the Dubai government in more than 12 months, as the emirate raised $8.3 billion from the sale of shares in four companies it owns, including the Dubai Electricity and Water Authority, during 2022. The share sales come within the framework of the unveiling plan. It was announced about two years ago to list 10 government companies, to boost declining trading volumes and keep pace with similar attempts in Abu Dhabi and Riyadh.
