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

Dubai’s road-toll gate operator Salik Company has increased the number of shares offered in its initial public offering (IPO) from 1.5 billion to 1.867 billion ordinary shares.

The ramped up offering has increased the stake size from 20 per cent to 24.9 per cent of Salik’s share capital. Meanwhile, the boosted IPO size will help raise north of $1bn.

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

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

Salik has also received approval from the Securities and Commodities Authority (SCA) to allocate the increase of the offer size. The increase distributed across tranches includes first and third tranches (in aggregate) will increase from 120 million to 145.725 million ordinary shares (or c.7.8 per cent of the offer size). Meanwhile, the second tranche (for qualified investors) will increase from 1.38 billion to 1.721 billion ordinary shares (or c.92.2 per cent of the offer size).

The new offering size was determined by the selling shareholder, following Salik’s decision to set the offer price at Dhs2 per ordinary share on September 13, 2022.

The subscription period for the IPO remains unchanged with institutional offering ending on September 21, while the book for retail buyers will close the day before.

Salik is expected to commence trading on the Dubai Financial Market (DFM) on September 29, 2022. The company’s starting market capitalisation is expected to be Dhs15bn ($4.1bn).

Investors who participated in the retail offer will be notified of their allocation of shares via SMS on September 26, 2022.

In June this year, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued Law No. (12) of 2022 to establish road toll operator Salik as a public joint stock company.

Read: Sheikh Mohammed issues law establishing Salik as public joint stock company