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Dubai’s Roads and Transport Authority (RTA) is in the early stages of exploring strategic options for its assets, including a possible initial public offering (IPO) for its taxi unit (Dubai Taxi Corporation), two people familiar with the matter told Reuters.
The two sources, who asked not to be named because the matter has not yet been announced, added that the authority intends to invite investment banks to submit proposals related to advising on deals that may include a possible evaluation of the Dubai Taxi Corporation.
However, one of the sources said the discussions had not yet resulted in a final decision and were still at a very early stage, with any potential deal subject to market conditions.
Dubai’s Roads and Transport Authority did not immediately respond to a Reuters request for comment on Monday
Last year, the authority raised $1 billion and attracted $50 billion in orders from the sale of a 24.9 percent stake in a public offering of shares in its road toll and tolling unit (Salik).
The website of the Dubai Taxi Corporation on the Internet shows that it started its work in 1995 with a fleet of 81 taxis that have now reached more than five thousand vehicles and also provide services such as commercial buses, school buses, limousine rentals and airport taxis.
In February, the Roads and Transport Authority said that it seeks to make taxis 100 percent environmentally friendly by 2027 through the hybrid use of electric power and hydrogen energy.
Dubai raised nearly $8.5 billion through five initial public offerings last year as part of a government-launched privatization plan to list 10 companies to boost market activity.
Market observers believe that the Emirates National Oil Company (ENOC) and the Dubai National Air Transport Association (Dnata) are among the candidates for IPO operations, but there has been no comment from the government or the two companies yet.
The Middle East witnessed offerings this year, including Abraaj Energy Services in Oman and ADNOC Gas in Abu Dhabi.
Companies from the Middle East raised about $21.9 billion through initial public offerings in 2022, accounting for more than half of the total funds raised by public offerings in the wider EMEA region, according to data from Dealogic.
