Tuesday, July 16, 2024

Dubai taxi and parking IPOs on the rise: what’s next?

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The Dubai government has been actively selling stakes in its state-owned entities, including Dubai Taxi Company (DTC) and Parkin, as part of a long-term plan to boost the size and position of its financial market. The first major IPO was Dubai Electricity and Water Authority (DEWA), which raised $6.1 billion in 2022, the largest IPO in the UAE and the largest utility IPO globally since 2008. This was followed by the IPOs of TECOM Group, Salik, and Empower, raising hundreds of millions of dollars. The latest IPOs were DTC, which received over $41 billion in investor orders for its $315 million offering, and Parkin, which received $71 billion in orders for its $429 million IPO. These IPOs are part of Dubai’s broader privatization program aimed at boosting stock market activity, repaying debt, and deepening capital markets. Market analysts expect more IPOs from Dubai-based companies, including energy firm ENOC and airport services provider dnata, in the coming years, further diversifying the emirate’s financial landscape.

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Local News