Dubai Taxi Corporation, a unit of Dubai’s transport regulator, plans to raise nearly $300 million from a listing on the local bourse next month, Bloomberg reported, citing informed sources.

The taxi operator intends to pay a dividend of at least 71 million dirhams ($19 million) for the fourth quarter of 2023 in April as part of the initial public offering (IPO), the report said.

After that, Dubai Taxi will pay nearly  85% of its annual net profit in two dividend payments from 2024, the report said, quoting a presentation.

The Roads and Transport Authority is working with Bank of America Corp., Citigroup Inc., and Emirates NBD Capital on the offering, which will be listed on the Dubai stock exchange.

The government raised $1 billion from an IPO of road-toll operator Salik Co. in 2022.

An IPO of Dubai Parking will likely follow the taxi business listing, Bloomberg said.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)