Dubai’s road-toll operator Salik on Friday announced that it has increased the number of shares offered in its initial public offering (IPO) — from 1.5 billion ordinary shares to 1.86 billion (1,867,500,000).
This would result in an increase in the offer size from 20 per cent to 24.9 per cent of Salik’s share capital, with the Government of Dubai continuing to own 75.1 per cent of its existing share capital.
Salik has also received an approval from the Securities and Commodities Authority (SCA) to allocate the increase of the offer size to the respective tranches as follows: the First and Third Tranches (in aggregate) will increase from 120 million to 145 million (145,725,000) ordinary shares (or c. 7.8 per cent of the offer size).
The Second Tranche (for qualified investors) will increase from 1.38 billion to 1.72 billion (1,721,775,000) 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 Dh2.00 per ordinary share on September 13.
This provides investors with a highly attractive value proposition, and also reflects Salik’s prioritisation of supporting aftermarket trading performance, post-listing.
The subscription period for the Salik IPO remains unchanged. The UAE Retail Offer will close on September 20, 2022, and the Qualified Investor Offering will close on September 21, 2022.
Investors who participated in the UAE Retail Offer will be notified of their allocation of shares via SMS on September 26, 2022.
Salik is expected to commence trading on the Dubai Financial Market (DFM) on September 29, 2022, under the symbol ‘SALIK’ and ISIN AEE01110S227. The company’s starting market capitalisation is expected to be Dh15 billion (US$4.1 billion).