Dubai toll operator Salik raises over $1bn from IPO

Dubai’s toll operator Salik has raised over Dhs3.7bn ($1bn) from its initial public offering (IPO) on the Dubai Financial Market (DFM).

The qualified investor tranche attracted demand worth Dhs149.5bn from around the world, implying an oversubscription level of 52x, excluding cornerstone investors.

The retail offering attracted more than Dhs34.7bn from local investors, implying that it was 119x oversubscribed. Total demand for the IPO crossed Dhs184.2bn, reflecting an oversubscription level of 49x.

Salik had upped its offering from 1.5 billion to 1.867 billion ordinary shares last week, increasing the stake size from 20 per cent to 24.9 per cent of its share capital. The offer price was set at Dhs2 per ordinary share.

Read: Dubai’s toll operator Salik boosts IPO size from 20% to 24.9%

The government of Dubai will own the remaining 75.1 per cent of Salik’s share capital.

Cornerstone investors, including UAE Strategic Investment Fund (through Emirates NBD AM SPC), Dubai Holding, Shamal Holding, and the Abu Dhabi Pension Fund (ADPF), collectively subscribed for 16.2 per cent of the offer size. Subject to certain customary exceptions, the cornerstone investors’ shares are subject to a 180-day lock-up arrangement, following the listing.

Read: IPO: Dubai to sell 20% stake of road-toll operator Salik

Salik is expected to commence trading on the DFM on September 29, 2022, and will have a market capitalisation of Dhs15bn ($4.1bn) at the time of listing.

Emirates NBD Capital, Goldman Sachs International, and Merrill Lynch International were appointed as joint global coordinators and joint bookrunners.

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 were also appointed as receiving banks.

Ibrahim Sultan Al Haddad, chief executive officer of Salik, said, “This listing is a key step in Dubai’s privatisation programme 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.”

Salik’s IPO is part of Dubai’s plans to list 10 government and state-owned companies to increase the volume of its stock market to Dhs3tn.

Read: Dubai announces listing of 10 govt, state-owned companies on DFM

Dubai’s TECOM Group, raised Dhs1.7bn from its listing in Q2 this year.

Read: Dubai’s TECOM Group completes IPO, raises Dhs1.7bn

In April, Dubai’s main power and water company DEWA raised $6.1bn in the biggest initial public offering in Europe and the Middle East in more than two years.

Read more: Dubai’s DEWA raises $6.1bn in EMEA’s biggest IPO since 2019