Dubai: Ahead of a possible initial public offering (IPO), Dubai Taxi will become a public limited company after a law to this effect was issued on Sunday. It was also approved that its shares be offered publicly and subscribed at the time of issuance.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, in his capacity as Ruler of Dubai, enacted a law transforming Dubai Taxi into a public limited company.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, issued Council Resolution No. 93 of 2023 on approving the charter of Dubai Taxi Company and offering its shares for public subscription.

The resolution approves the statutes of Dubai Taxi Company PJSC, including the rules and regulations, including the offering of shares of the company for public subscription, in accordance with the percentages determined by the Executive Council of the emirate.

It also identifies the company’s purposes and terms of reference, the mechanisms for appointing and electing its board of directors, and other rules that govern the company’s work.

Board of Directors

Sheikh Hamdan also issued Council Resolution No. 92 of 2023 forming the board of directors of Dubai Taxi Company under the chairmanship of Abdul Mohsen Ibrahim Younis.

Ahmed Ali Al Kaabi is the vice president, while Shehab Hamad Bushahab, Yousef Ahmed bin Ghalaita, Dr. Hanan Suleiman Al Suwaidi, Abdullah Mohammed bin Damithan and Issa Abdullah bin Natuf will be members.

Under the law, Dubai Taxi Company replaces Dubai Taxi Corporation in all laws in force in the emirate and exercises all powers conferred on the Corporation under such legislation.

All rights, property, funds, tangible and intangible assets and privileges, as well as obligations, guarantees and commitments belonging to the Corporation, whether within or outside the emirate, shall be transferred to Dubai Taxi Company.

The law also stipulates that all assets, rights and obligations vested in the company on its behalf or on behalf of any company owned or affiliated with it shall be transferred in accordance with the laws in force in the emirate.

The purposes of the company include the exercise of the activity of taxi transportation, in accordance with the legislation in force in the Emirate, whether through transit travel, communication, electronic means or intelligent applications, the exercise of the activity of specialized transportation using autonomous vehicles. and air vehicles in accordance with current legislation, the rental of vehicles, with or without a driver, the provision of supply and provision of drivers, the exercise of the activity of renting bicycles to freight transport companies, in addition to the purposes specified in the company’s statutes.

Possible IPO

Bloomberg had reported last month, citing informed sources, that Dubai Taxi plans to raise nearly $300 million with its listing on the local stock exchange next month. An initial public offering of Dubai Parking will likely follow the listing of the taxi business, Bloomberg further noted.

The IPO plans are in line with plans Dubai revealed a year earlier to list 10 state-owned companies to increase the size of its financial market to 3 trillion dirhams, as well as create a 2 billion dirham market creation fund. dirhams to encourage the listing of more private companies. companies in sectors such as energy, logistics and retail. The government raised $1 billion with an initial public offering (IPO) of Salik Co. in 2022, an offering that was also preceded by the toll operator’s establishment as a public limited company before listing its shares to the public.