Dubai (Etihad)
Salik, the exclusive operator of the Dubai toll booth, announced yesterday the successful completion of the subscription order book and IPO process for its initial public offering on the Dubai financial market.
The company confirmed that the size of the offer after the increase was n. 1,867,500,000 ordinary shares, equal to 24.9% of the total shares issued in the capital of “Salik”, with a share price of 2 dirhams per ordinary share, which resulted in a total return exceeding 3.7 billion dirham / $ 1 billion / payable to the Dubai government, represented by the Department of Finance, “the selling shareholder”, after adjusting any costs related to the offering.
The supply saw a large turnout, as the total demand for the public offering was over 184.2 billion dirhams ($ 50.2 billion), which means that the subscription has been exceeded by approximately 49 times for all segments combined. The qualified investor segment attracted strong demand from around the world of 149.5 billion dirhams, indicating a 43-fold increase in subscription demand, with the exception of core investors, which exceeded requests by 52 times. of subscription. Individual investor supply saw huge turnout from local investors as subscription demand exceeded Dh 34.7 billion, indicating a more than 119-fold increase. The huge demand for Salik shares from investors confirms the compelling investment offer of the company as the exclusive operator of traffic tariffs in Dubai. Mattar Al Tayer, Chairman of the Board of Directors of Salik, expressed his satisfaction with the huge request to subscribe for Salik shares. He said: “This is a testament to the confidence of global investors in Dubai’s financial markets. In addition to the strength and durability of the company, which is the sole operator of the traffic tariff system in Dubai, as well as the effective regulatory framework and strong business model of the company, which will allow it to remain at the center of the expansion plans of the road and transport sectors in order to support the economic growth of the emirate in general.
Al Tayer added: “The subscription represents an important milestone in Salik’s journey and offers the opportunity to consolidate the company’s success as the sole operator of the toll collection system for Dubai’s road network and will help improve the experiences of road users through its pivotal role in traffic management and future mobility in the emirate. ” Ibrahim Sultan Al-Haddad, CEO of Salik, said: “This listing represents an important step towards the realization of Dubai’s privatization program and its broader plans to attract foreign investment. After 15 years of facilitating mobility in Dubai, the company is now at the heart of the city’s economic expansion plans. This offering builds on Salik’s established legacy and we are delighted to see strong demand for its shares from local and international investors. “After completing Salik’s initial public offering, the Dubai government will retain ownership of the 75.1% of the company’s capital. The UAE Strategic Investment Fund, through Emirates NBD AM SPC, Dubai Holding, Shamal Holding and Abu Dhabi Pension Fund, has subscribed for 16.2% of the shares offered. customary exceptions, the shares held by all major investors will be subject to a non-trading period of 180 days, following the listing of the company. In addition, as part of the Offer for Qualified Investors, and in accordance with both the Companies Act that under Dubai Law, 5% of the Offering Shares will be reserved for the Emirati Investment Authority and 5% of the Offering Shares will be reserved for the Pension and Fund social security for local military personnel.
Salik shares will begin trading on the Dubai financial market on September 29, 2022, with the symbol “SALIK” and the international securities identification number (AEE01110S227).
At the time of listing, the market value of the company will be 15 billion dirhams (4.1 billion dollars). Investors who have participated in the offer from individuals, companies and institutions that hold a domestic investor number at the Dubai Financial Market will be notified of the shares allotted to them via SMS on 26 September 2022.
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