Dubai road toll operator Salik to sell 20% of its shares via IPO – document


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DUBAI — Dubai road toll operator Salik said on Monday it was selling 20% ​​of the company through an initial public offering and targeting listing by the end of September.

Salik, which was transformed into a private stock company in June, is selling 1.5 billion shares, according to a prospectus. The offer price will be confirmed on September 22 and a listing is expected around September 29, he said.

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The company is looking to raise around $1 billion for the shares, implying a valuation of $5 billion, sources told Reuters.

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Dubai launched its Salik electronic toll system in 2007 to ease congestion in the regional mall, which at the end of April had 3.6 million registered vehicles, of which 1.8 million were Dubai-registered vehicles.

The Deputy Ruler of Dubai, Sheikh Maktoum Bin Mohammed, had announced in November his intention to transform Salik, then a division of the Roads and Transport Authority (RTA), into a public company. Its listing and that of nine other government-linked entities was aimed at stimulating stock market activity.

The listing plans aim to make Dubai a more competitive market, with larger exchanges in Saudi Arabia and neighboring Abu Dhabi attracting larger listings and strong liquidity.

Gulf issuers raised more than $11 billion in the first half of this year from IPOs, Refinitiv data shows, outpacing European IPOs even as global markets remain volatile in the wake of Russia’s invasion of Ukraine.

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The Dubai Electricity & Water Authority raised $6.1 billion in April in its IPO, the largest in the region since Saudi Arabia’s record deal in 2019.

Dubai business park operator TECOM Group raised 1.7 billion dirhams ($463 million) from investors in June through its IPO.

Salik, which means « open » or « clear » in Arabic, reported a base profit of 800 million dirhams ($217.82 million) in the first half of this year, compared to 637.41 million in the same period last year. 2021.

Its IPO has three tranches, one offered to individuals, the second offered to professional investors and the third to employees. 5% of the shares will be allocated to the Emirates Investment Authority, a federal sovereign wealth fund.

Dubai’s Emirates NBD, Goldman Sachs and Bank of America are the global co-coordinators of the deal, while Citigroup, Egypt’s EFG-Hermes and HSBC are the joint bookrunners, the document said. ($1 = 3.6727 UAE dirhams) (Reporting by Hadeel Al Sayegh; Editing by Muralikumar Anantharaman and Uttaresh.V)



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