Dubai (Etihad)
Salik, the exclusive operator of the traffic toll gate in Dubai, announced yesterday the successful completion of the drafting of the subscription order book and the IPO process for its initial public offering on the Dubai Financial Market.
The company confirmed that the size 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 of “Salik”, with a share price of 2 dirhams per ordinary share, which resulted in a total return of more than 3.7 One billion dirhams/1 billion dollars/ payable to the Government of Dubai, represented by the Department of Finance, “the selling shareholder,” after adjusting 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 (50.2 billion dollars), which means that the subscription was exceeded by about 49 times for all segments combined. The qualified investors segment attracted huge demand from all over the world, reaching 149.5 billion dirhams, which indicates an increase in the demand for subscription by 43 times, with the exception of the core investors, which exceeded the subscription requests by 52 times. The offering of individual investors witnessed a huge turnout from local investors, as the demand for subscription exceeded 34.7 billion dirhams, indicating an increase of more than 119 times. 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. Mattar Al Tayer, Chairman of the Board of Directors of Salik, expressed his happiness with the huge demand for subscribing to Salik shares. He said: “This is a testament to the confidence of global investors in the Dubai financial markets. As well as the strength and durability of the company, which is the exclusive operator of the traffic tariff system in Dubai, in addition to the company’s effective regulatory framework and strong business model, which will allow it to remain at the heart of expansion plans for the roads and transportation sector in a way that supports the economic growth of the Emirate in general.”
Al Tayer added: “The subscription represents an important milestone in the path of Salik, and provides an opportunity to consolidate the company’s success as an exclusive operator of the toll collection system for the road network in Dubai, and will contribute to improving the experiences of road users through its pivotal role in managing traffic and future mobility in the emirate.” Ibrahim Sultan Al-Haddad, CEO of Salik, said: “This listing represents an important step towards realizing 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 center of the city’s economic expansion plans. This offering builds on the legacy established by Salik, and we are pleased to see strong demand for its shares from local and international investors.” After completing the initial public offering of Salik, the Dubai government will retain ownership of 75.1% of the company’s capital. The UAE Strategic Investment Fund, through Emirates NBD AM SPC, Dubai Holding, Shamal Holding, and the Abu Dhabi Pension Fund, subscribed to 16.2% of the offered shares. Subject to certain customary exceptions, shares owned by all major investors will be subject to a 180-day no-trading period, after the company is listed. Furthermore, as part of the Qualified Investors Offering, and in accordance with both the Companies Law and Dubai Law, 5% of the Offer Shares will be reserved for the Emirates Investment Authority and 5% of the Offer Shares will be reserved for the Pension and Social Security Fund for local military personnel.
Salik shares will begin trading on the Dubai Financial Market on September 29, 2022, under the symbol “SALIK” and the International Securities Identification Number (AEE01110S227).
Upon listing, the company’s market value will be 15 billion dirhams ($4.1 billion). Investors who participated in the offering from natural persons, companies and institutions who hold a national investor number with the Dubai Financial Market will be informed of the shares allocated to them via an SMS on September 26, 2022.