Lifted up Dubai The size of the offer of shares of the road toll operator “SALIC”, in light of the demand that exceeded expectations in the offer on the stock exchange.
The government will sell up to 1.867 billion shares (24.9%) of the company, although the initial plan was to offer a 20% stake. Under the decision, “qualified investors” (institutions) will be able to subscribe up to 1.72 billion shares, equal to 92.2% of the shares offered. The volume of shares offered for individual subscription is 146 million.
Strong demand for Salik’s offering shows that appetite for Middle East IPOs has not declined, despite recent volatility in the face of economic challenges and crisis oil prices. Dubai Electricity and Water Authority shares registered “diva” and group “TECOM” Poor performance, as both are newly listed, after the region amassed a record IPO in the first half of the year.
DEWA raised $ 6.1 billion in April, after increasing its stake nearly three times to 18%, versus an initial goal of 6.5%.
Salik is an automated system introduced in 2007. Each time a car passes one of the city’s eight toll booths, 4 dirhams ($ 1.09) are deducted from a prepaid account, eliminating the need for cash or toll booths.
The main investors in Salik’s public offering, namely: UAE Strategic Investment Fund, Dubai Holding, Al Shamal Holding Company and Abu Dhabi Pension Fund, have pledged to pump up to 606 million dirhams, or 16.2% of the size of the offer.
The institutional offering of the Salik shares ends on 21 September and trading is expected to start on 29 September.
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