Missed the last huge Dubai stock investment opportunity when Salik launched last year? Never fear, there’s another taxi coming right around the corner.
The RTA is currently exploring options on launch an initial public offering, also called an IPO, for Dubai Taxi Corporation, which would allow average investors to buy stock in one of the key fixtures of the city at a time when the UAE transportation is absolutely booming and demand continues to skyrocket.
Yes, if you’re keeping track, that’s exactly what the RTA did for Salik to great success.
This is obviously just as huge as it sounds, but it’s still in the early stages. According to sources close to Khaleej Times, the Roads and Transport Authority of Dubai is currently planning to invite investment banks to pitch advisory work for the company, which would include seeing if the move would make sense.
No final decisions have been made, and it’s all still very early, and it will really depend on how the market fares in the coming months, according the outlet.
Why a Dubai Taxi Corp. IPO is a gamechanger
If the move goes through, it would likely cause lines around the block longer than the taxi queue at Dubai Mall.
After all, Salik’s IPO raised a cool $1 billion, drawing orders for up to $50 billion, after they went public with 24.9% of the toll business of the emirate.
Dubai’s thriving Uber competitor, which has also launched partnerships with companie such as Careem, has seen a similar growth trajectory as Salik has, going from only 81 taxis back in 1995 to 5,000 now, also working with commercial buses, airport taxis, school busses (seen above!) and limos.
Has Salik turned out to be a good investment?
So here’s the thing, and why it seems very likely this may happen: Salik has been booming. Since launching in October 2021, the stock has gone from AED 2.2 per share to AED 2.97 per share now, an increase of 35%.
Just two weeks ago, that percentage was even higher, with stock getting above AED 3 a share, a total of almost 40%, according to Yahoo!.
And that could continue to rise, as there are still moves planned for Salik.
“The Roads and Transport Authority (RTA) could implement dynamic pricing through optimising the toll rates depending on the time of the day, for example, by charging a higher toll fee for specific lanes or during peak hours,” the company said in its original IPO announcement.
With that kind of jump, it would seem to make a great deal sense for the RTA to jump up, but hey, we’re not an investment bank, so that’s just speculation.
Say it with us one more time: Dubai Taxi Corporation welcomes you, and wishes you a pleasant journey!
Please don’t forget all your valuable belongings and be sure to diversify your portfolio as you’re leaving the taxi.
Be safe out there everyone, and be sure to consult with an investment professional before jumping into any stocks, of course!
All the best, everyone.