"Salik" announces the share price at two dirhams
Salik, the exclusive operator of traffic toll gates in Dubai, announced the pricing of the public offering shares and the start of the subscription period for the initial public offering on the Dubai Financial Market.
According to a statement issued by the company today, the share price was set at 2 dirhams per share, and the total volume of the offering is expected to be 3 billion dirhams ($ 817 million), making the company's market value 15 billion dirhams ($ 4 billion).
Ibrahim Sultan Al-Haddad, CEO of Salik, said: “SALIC plays a vital role in Dubai’s urban development plans. The company’s growth is coupled with the growth of the city in general, so this offering provides an important opportunity for investors to be part of that journey. Expressing its intention to list its shares in the financial market with great interest, and we believe that investing in the company represents a unique opportunity for institutions and individuals alike, as the "Traffic Tariff - Salik" system is considered one of the technically advanced basic infrastructure assets, which allows the company to benefit from the ongoing expansion plans in Dubai, As well as its unique business model that requires low capital expenditures.
It is planned to offer one billion five hundred million shares for public subscription, representing 20% of the total issued shares in the capital of Salik, with the selling shareholder retaining the right to increase the size of the offering at any time before the end of the subscription period at his absolute discretion and based on the applicable laws and after it The approval of the Securities and Commodities Authority.
All shares that will be offered for subscription represent a sale of existing shares owned by the Government of Dubai.
According to what was previously announced, subscription to the offered shares will be available to the segments of individual investors in the UAE: to individuals and other investors in the UAE as specified in the prospectus, referred to as “first tranche” subscribers and some qualified employees as shown in the prospectus and referred to subscribers of the “Third Tranche”, in addition to an offering to professional investors and other investors in a number of countries outside the United States of America, including the United Arab Emirates, in accordance with the “S RegS” regulation of the US Securities Act “Qualified Investors Offering” and referred to as subscribers The second slide.
Moreover, 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 Local Military Pension and Social Security Fund “the Fund”.
The retail subscription period in the United Arab Emirates extends to September 20, 2022, while the subscription period for qualified investors extends to September 21, 2022.
The offering and acceptance of listing is expected to be completed on September 29, 2022, based on market conditions and after obtaining relevant regulatory approvals in the UAE, including approval for listing and trading on the Dubai Financial Market.
On September 12, 2022, the company entered into primary investment agreements with the UAE Strategic Investment Fund (through Emirates NBD AM SPC), Dubai Holding, Shamal Holding and the Abu Dhabi Pension Fund (together referred to as the “core investors”, according to Under it, each of the main investors individually and not jointly, collectively or individually, who have committed to investing a total of about 606 million dirhams (about 165 million dollars) in the public offering of the company, and the shares owned by all the primary investors will be subject to a 180-day ban period, following the listing company.
Emirates NBD AM SPC operates on behalf of the UAE Strategic Investment Fund, which was set up as a long-term strategic investor in the Dubai IPOs, and is a separate portfolio of Emirates NBD AM SPC managed by Emirates NBD Asset Management. ;
One of the largest asset managers in the Middle East with a proven track record of investments in listed equities and other asset classes in the MENA region, through separate mandates and mutual funds.
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