Dubai's Salik announces IPO offer price at Dh2 per share

UAE Strategic Investment Fund, Dubai Holding, Shamal and Abu Dhabi Pension Fund named cornerstone investors

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Waheed Abbas

Published: Tue 13 Sep 2022, 8:59 AM

Last updated: Tue 20 Sep 2022, 8:24 AM

Dubai’s exclusive toll gate operator Salik Company on Tuesday said it will raise Dh3 billion through the initial public offering (IPO).

The price for the IPO has been set at Dh2.0 per share, implying a market capitalisation of Dh15 billion.

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A total of 1.5 billion ordinary shares, which is equivalent to 20 per cent of Salik’s total issued share capital, will be offered. The Dubai government, the owner of the Salik Company, reserves the right to increase the size of the offering at any time prior to the end of the subscription period.

Dubai government earlier announced that it would sell shares in 10 public sector companies to boost the market capitalisation of the local stock market to Dh3 trillion.

Salik will be the third company after the Dubai Electricity and Water Authority (Dewa) and Tecom Group to list shares on the Dubai Financial Market. Both the previous IPOs saw strong demand and oversubscription. And Salik IPO is likely to attract a good response, too, if not better.

Comprising individual subscribers, professional investors and eligible employees, the subscriptions will open on September 13 and end on September 20 for retail investors and till September 21 for qualified investors. The company is likely to list on the Dubai Financial Market (DFM) on September 29.

“We are delighted by the strong interest we have received since announcing our intention to float. As a technologically advanced core infrastructure asset positioned to benefit from Dubai’s expansion plans, and given its unique capex-light business model, we believe Salik represents an attractive investment proposition for both institutional and retail investors,” said Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik.

Cornerstone investors

Salik said it has signed agreements with the UAE Strategic Investment Fund (through Emirates NBD AM SPC), Dubai Holding, Shamal Holding and The Abu Dhabi Pension Fund (ADPF) to become cornerstone investors, who have committed up to Dh606 million to the IPO with their shares subject to a 180-day lock-up arrangement, following listing.

Emirates NBD Capital has been appointed as the financial advisor while Moelis & Company DIFC Branch has been appointed as the independent financial advisor to Salik.

Emirates NBD Capital, Goldman Sachs International, and Merrill Lynch International have been appointed as joint global coordinators and joint book-runners.

Emirates NBD Bank has been appointed as the lead receiving Bank. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, MBank and Sharjah Islamic Bank have also been appointed as Receiving Banks.

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Waheed Abbas

Published: Tue 13 Sep 2022, 8:59 AM

Last updated: Tue 20 Sep 2022, 8:24 AM

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