Salik raises more than 3.7 billion dirhams, and the demand for the offering exceeds 49 times

 Salik, the exclusive operator of the traffic toll gate in Dubai, announced today 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 total returns of more than 3.7 billion dirhams / $1 billion/ payable to the Government of Dubai represented by the Department of Finance, the "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 (50.2 billion dollars), which means that the subscription has exceeded 49 times for all segments combined.

The qualified investors segment attracted huge demand from all over the world, amounting to 149.5 billion dirhams, indicating an increase in demand for subscription by 43 times (excluding core investors, which exceeded subscription requests 52 times/).

The offering of individual investors witnessed a huge demand 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 turnout for the subscription in Salik shares. He said: “This is evidence of 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 the 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 Salik's journey, 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 working to facilitate mobility in Dubai, the company is today at the center of its expansion plans. This proposition 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 "Emirati Strategic Investment Fund" / through Emirates NBD AM SPC /, Dubai Holding, "Shamal Holding", and the Abu Dhabi Pension Fund, have subscribed for 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.

It is expected that Salik shares will start 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 dollars).

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.

Follow our latest local and sports news and the latest political and economic developments via Google news