Dubai’s tollgate operator, Salik has raised $1.01 billion (Dh3.73 billion) from its initial public offering (IPO) on the Dubai Financial Market (DFM).
Salik said in a statement that the IPO was more than 49 times oversubscribed across all tranches, with total gross demand at $50.2 billion (Dh184.2 billion).
The company confirms the previously announced upsized offering size of 1,867,500,000 ordinary shares (offer shares), equivalent to 24.9 percent of the total issued share capital, along with the offer price of $0.54 (AED 2.00) per ordinary share.
The emirate’s government sold more than 1.867 billion shares in the company up from the previously announced 1.5 billion shares, equivalent to 20 percent.
“This reflects the trust and confidence from the global investor community in Dubai’s capital markets and the strong position of the company as Dubai’s exclusive tollgate operator, in addition to its effective regulatory framework and robust business model, which will enable the Company to continue to remain at the heart of expansion plans in the road and transport sector, in support of the emirate’s economic growth. The IPO represents an important milestone in Salik’s journey and provides an opportunity to solidify the company’s success as an exclusive toll gate operator for the road network in Dubai and will contribute to improving the experiences of road users through its pivotal role in managing traffic and the future of mobility in the emirate.”
Following the completion of the Salik IPO, the Government of Dubai will continue to own 75.1 percent of Salik’s share capital.
Mr. Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, said that, “This listing is a key step in Dubai’s privatization program and its broader plans to attract foreign investment. Having kept Dubai moving for 15 years, Salik is at the heart of the city’s economic expansion plans. The IPO builds on the Company’s legacy, and we are pleased to have seen strong demand for Salik shares both from local and international investors.”
Salik is expected to commence trading on the DFM on 29 September 2022, under the symbol ‘SALIK’. According to the statement, “At listing, the company will have a market capitalization of $ 4.1 billion (AED15.0 billion).”