Salik IPO will begin the opening of the
subscription for the initial public offering on Tuesday, in preparation
for listing its ordinary shares for trading on the Dubai Financial
Market, as the fourth listing in the market since the beginning of this
year 2022, after the Dubai Electricity and Water Authority “DEWA” and
the “TECOM Group” and the Union Cooperative.
The initial public offering represents an important milestone in Salik's
journey, as it provides an opportunity to consolidate its success as an
exclusive operator of traffic toll gates in Dubai, where it currently
operates eight gates distributed in strategic locations across the
emirate's busiest corridors.
The process of offering Salik consists of individual subscribers “the
first tranche”, professional investors “the second tranche” and
qualified employees “the third tranche”, and is expected to end on
September 20 for individual investors in the UAE and on September 21 for
qualified investors.
During the subscription process, Salik will provide about 1.5 billion
shares with a nominal value of Dhs 0.01 per share, which represents 20%
of the total issued shares in the capital of Salik.
The offer price per share will be determined during and after the process of building up the subscription order book.
Participants in the offer of individual investors in the United Arab Emirates will subscribe at the offer price.
Finalization of the offer and acceptance of the listing is currently
scheduled for September 2022, depending on market conditions and have
obtained relevant regulatory approvals in the United Arab Emirates,
including approval for listing and trading on the Dubai Financial
Market.
After completing the offering, Salik intends to distribute dividends
twice in each fiscal year after the offering in April and October of
each year. The company expects to distribute the first dividends for the
second half of 2022 by April 2023, while the company expects to
distribute 100% of the net profit.
After maintaining the legal reserve required by law, it is expected that
the legal reserve will reach the amount of Dhs37.5 million before
distributing the first profits.
From 2023, the Company plans to pay out 100% of the distributable net
profit as a dividend. The dividend policy is subject to various
considerations assessed by the Board of Directors in consideration of
the Company's business liquidity management requirements with respect to
operating expenses, financing costs, planned capital expenditures and
investments.
The Government of Dubai, represented by the Ministry of Finance, the
"selling shareholder," reserves the right to modify the size of the
offer at any time before the end of the subscription period in its
absolute discretion and based on the applicable laws and after the
approval of the Securities and Commodities Authority.
The company's capital, as on the date of listing, was set at Dhs75
million, divided into 7.5 billion fully paid shares, and the value of
each share is Dhs0.01.
Dubai’s Salik to start selling 20% shares via IPO beginning Sept.13
