Dubai: Salik ups IPO size to 24.9% due to strong investor demand

Dubai's road-toll operator Salik on Friday announced that it has increased the number of shares offered in its IPO — from 1.5 billion ordinary shares to 1.86 billion (1,867,500,000).

This move — which comes as a response to strong investor demand — increases the IPO size from 20 to 24.9 per cent of Salik’s share capital, with the Government of Dubai continuing to own 75.1 per cent.

Salik has also received an approval from the Securities and Commodities Authority (SCA) to allocate the increase to respective tranches. The first and third tranches (in aggregate) will increase from 120 million to 145 million (145,725,000) ordinary shares.

The second tranche (for qualified investors) will increase from 1.38 billion to 1.72 billion (1,721,775,000) ordinary shares.

The larger IPO size follows Salik’s decision to set the offer price at Dh2 per share on September 13.

This provides investors with a highly attractive value proposition, and also reflects Salik’s prioritisation of supporting aftermarket trading performance, post-listing.

The subscription period for the Salik IPO remains unchanged — it will close on September 20 for individuals and September 21 for qualified investors.