Local shares achieve gains of 56.64 billion dirhams

15 billion dirhams, its market value.. "Salik" sets the price of the IPO share at two dirhams

Salik plays a vital role in Dubai's urban development plans.

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Salik announced the pricing of the IPO share, and the start of the subscription period for the initial public offering on the Dubai Financial Market.

In addition, the local stock markets consolidated their gains, and their market capitalization gained more than 56.64 billion dirhams during the Monday and Tuesday sessions, amid purchases targeting the "leading stocks", and the start of the subscription with the offering of the "Salik" company.

In detail, Salik, the exclusive operator of traffic toll gates in Dubai, announced the pricing of the IPO share 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 yesterday, the share price was set at two dirhams per share, and the total volume of the offering is expected to be three billion dirhams ($817 million), making the company's market value 15 billion dirhams ($4 billion).

Salik CEO Ibrahim Sultan Al-Haddad said: “SALIC plays a vital role in Dubai’s urban development plans, and the company’s growth is coupled with the growth of the city in general. Therefore, this offering provides an important opportunity for investors to be part of that journey.

The company's announcement of its intention to list its shares on the financial market has received great attention, 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 of its ongoing expansion plans in Dubai, as well as its unique business model that requires low capital expenditures.”

It is planned to offer 1.5 billion 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 obtaining the approval of the Securities and Commodities Authority.

All the shares that will be offered for subscription represent a sale of the existing shares owned by the Government of Dubai.

Moreover, as part of the offering of qualified investors, and in accordance with both the Companies Law and Dubai Law, 5% of the shares of the offering will be reserved for the Emirates Investment Authority, and 5% of the shares of the offering will be reserved for the Pension and Social Security Fund for the local military "the Fund".

The offering and acceptance of listing is expected to be completed on September 29.

On September 12, 2022, the company entered into basic investment agreements with the UAE Strategic Investment Fund, through Emirates NBD AM SPC, Dubai Holding, Shamal Holding, and the Abu Dhabi Pension Fund, collectively referred to as the “Investors”. The main investors, who have committed to investing a total of about 606 million dirhams (about 165 million dollars) in the company’s public offering, and the shares owned by all the primary investors will be subject to a 180-day ban on trading, following the listing of the company.

In addition, the local stock markets consolidated their gains, and their market capitalization gained more than 56.64 billion dirhams during the Monday and Tuesday sessions, amid purchases targeting the "leading stocks", and the start of the subscription with the offering of the "Salik" company.

The market capital of the listed shares rose from 2.649 trillion dirhams at the end of last Friday's session, to 2.705 trillion dirhams at the end of yesterday's session, distributed by 2.133 trillion dirhams for shares listed on the Abu Dhabi Stock Exchange, and 572 billion dirhams for shares listed on the Dubai Financial Market.

During the two sessions, local shares attracted more than 3.85 billion dirhams of liquidity.

The Dubai Financial Market rose by 1.6 percent at the level of 3,458 points, with transactions worth 405 million dirhams.

The Abu Dhabi market index "FADEX 15" increased by 0.5%, at the level of 9,995 points, with transactions worth a total of 1.7 billion dirhams.

For his part, CEO of the Middle East and North Africa region at BD Suisse, Daniel Taqi El-Din, said: “The Dubai Financial Market is benefiting from an important support thanks to the strength of the recovery in most economic sectors, with the improvement of commercial activity, industrial production, the number of visitors and tourists.

In addition to these good foundations, IPOs, such as the listing of Salik in the market, are driving to high levels, due to their impact on the morale of traders and their appetite for risks.

This type of operation helps in attracting investors’ interest and attracting liquidity, especially in this period, during which we see a slowdown in IPOs globally.”

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