DUBAI, 28th September, WAM / The Dubai Financial Market will witness the listing of the “Salik” company tomorrow as the fourth listing in the market during the current year 2022, after the Dubai Electricity and Water Authority “DEWA”, “TECOM” and “Union Cooperative”, as part of the strategy of the “Committee of Developing the financial markets and stock exchanges” in Dubai, which aims to double the value of the financial markets in the emirate to 3 trillion dirhams during the next phase.
These listings come as a continuation of the efforts of the Capital Markets and Exchange Development Committee to continue developing the financial markets sector and provide it with innovative tools and solutions, thus enhancing Dubai’s position and competitiveness as one of the most important and largest financial centers in the region and the world.
Salik has recently successfully completed drafting the subscription order book and the public offering process for its initial public offering on the Dubai Financial Market. The volume of the offering after the increase amounted to 1,867,500,000 ordinary shares, equivalent to 24.9% of the total issued shares in the capital, with the share price. At a rate of 2 dirhams per ordinary share, which resulted in a total proceeds of more than 3.7 billion dirhams payable to the Government of Dubai represented by the Department of Finance “selling shareholder” after adjusting for any costs related to the offering.
The offering witnessed a great turnout, as the total demand for the public offering amounted to more than 184.2 billion dirhams, which means that the subscription exceeded about 49 times for all segments combined, and the huge demand from investors for Salik shares confirms the convincing investment offer of the company as the exclusive operator of traffic tariffs in Dubai.
The first listing on the Dubai Market was for the Dubai Electricity and Water Authority (DEWA) last April, to become the largest listed company in the market in terms of market value, the second largest in the region, and the largest ever in the history of the UAE capital markets.
Dewa’s offering included the sale of 9 billion shares, representing 18% of its issued capital, bringing the total proceeds of the offering to 22.3 billion dirhams, with the Dubai government retaining a share representing 82% of the company’s issued capital.
DEWA witnessed strong demand and exceptional demand for its shares from various investor segments, as it received subscription requests that exceeded the offered shares by 37 times, excluding core and strategic investors.
TECOM Group is considered the second listing after the great success of the offering, which witnessed the highest coverage rate in the history of public offerings on the Dubai Financial Market, which is evidence of the firm’s foundations, capabilities and ability to continue expansion and growth, in addition to optimism in Dubai’s economy and its promising growth prospects, and solid confidence. The strength of the financial markets in the emirate.
The offering of “TECOM” attracted strong demand within the subscription of qualified institutional investors and the subscription of individuals in the UAE, where the value of the subscription requests received amounted to 35.4 billion dirhams, which resulted in a total coverage of the amount of shares offered by more than 21 times according to the final price. Through this offering, TECOM succeeded in raising 1.7 billion dirhams.
Today, the Dubai Financial Market welcomed the listing of Union Coop shares last July as the first consumer cooperative in the country to take this pioneering step in implementation of the Cabinet’s decision regarding the trading of cooperative societies’ shares in the country’s financial markets, which aims to enhance the regulatory environment for cooperatives and raise their competitiveness.
Union Coop is one of the largest consumer cooperatives in the country, and the total value of its shareholders’ equity has exceeded the three billion dirhams barrier, and achieved a cumulative annual growth rate of 20.5% for net profits between 1984 and 2021, while the cumulative annual growth rate of sales reached 16.85%.
Union Coop’s strategy focuses on increasing profits and returns for shareholders by raising the level of sales and revenues while carefully monitoring costs, in addition to continuous development of services for the benefit of customers.