Dubai’s RTA invites banks to pitch for taxi business IPO: Sources

Dubai’s Roads and Transport Authority (RTA) has invited investment banks to pitch for roles in the planned initial public offering of its taxi business, two sources with knowledge of the matter told Reuters.

The RTA is targeting a potential public share sale of Dubai Taxi Corporation around December or January, said the sources, declining to be named as the matter is not public.

The RTA did not immediately respond to a request for comment from Reuters.

The RTA has appointed Rothschild & Co to advise on a strategic review of its assets, which include its taxi and public parking businesses, Reuters reported on July 7, citing sources familiar with the matter.

It is also looking at options for its Nol card, which passengers use to pay for public transport, and is expected to appoint Dubai lender Emirates NBD for the potential IPOs, two sources said, according to the July 7 report.

The RTA last year raised $1 billion and drew orders of $50 billion for a 24.9% stake in a public share sale of its toll-road business Salik.

Dubai raised nearly $8.5 billion from five IPOs last year, fuelled by a government privatisation plan to list 10 state-linked companies to boost stock market activity.

Companies in the region raised $21.9 billion through IPOs last year, more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.

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