Dubai’s Salik to float IPO today
DUBAI: Salik Company will launch its Initial Public Offering (IPO) on Tuesday, in preparation for listing its ordinary shares for trading on the Dubai Financial Market, as the fourth listing in the market since the beginning of this year 2022, ater the Dubai Electricity and Water Authority (Dewa) and the Tecom Group” and the Union Cooperative.
The initial public offering represents an important milestone in Salik’s journey, as it provides an opportunity to consolidate its success as an exclusive operator of traffic toll gates in Dubai, where it currently operates eight gates distributed in strategic locations across the emirate’s busiest corridors.
The process of offering Salik consists of individual subscribers “the first tranche”, professional investors “the second tranche” and qualified employees “the third tranche”, and is expected to end on September 20 for individual investors in the UAE and on September 21 for qualified investors.
During the subscription process, Salik will provide about 1.5 billion shares with a nominal value of Dhs 0.01 per share, which represents 20% of the total issued shares in the capital of Salik.
The offering price per share will be determined during and ater the process of building the subscription order book. Participants in the offering of individual investors in the UAE will subscribe at the offer price. The offering and acceptance of listing is currently expected to be completed in September 2022, based on market conditions and ater obtaining relevant regulatory approvals in the UAE, including approval for listing and trading on the Dubai Financial Market.
Ater completing the offering, Salik intends to distribute dividends twice in each fiscal year ater the offering in April and October of each year. The company expects to distribute the first dividends for the second half of 2022 by April 2023, while the company expects to distribute 100% of the net profit.
Ater maintaining the legal reserve required by law, it is expected that the legal reserve will reach the amount of Dhs37.5 million before distributing the first profits.
From 2023 onwards, the Company expects to pay 100% of the net profit distributable as dividend. The dividend policy is subject to several considerations considered by the Board of Directors in consideration of the cash management requirements of the Company’s business in relation to operating expenses, financing costs, projected capital expenditures and investments.
The Government of Dubai, represented by the Department of Finance, the “seller shareholder”, reserves the right to amend the size of the offering at any time before the end of the subscription period at its absolute discretion and based on the applicable laws and ater the approval of the Securities and Commodities Authority.
The company’s capital, as on the date of listing, was set at Dhs75 million, divided into 7.5 billion fully paid shares, and the value of each share is Dhs0.01.
Ahmed Al Katheeri, Chief Operating Officer (COO) at Traders’ Hub, the Uae-regulated and Abu Dhabi headquartered brokerage firm told Gulf Today that despite the current risks and uncertainty in global economic conditions and geopolitical tensions, the stock markets in the UAE have strong potential. The country is seeing solid economic growth and improving levels of international traffic and trade.” He added
“In the current risk-averse atmosphere and due to global uncertainties, investors are keen to find appropriate investment opportunities.
“In this regard, the IPOS in the UAE offer strong potential thanks to the solid profile of the companies involved. Salik could provide a significant boost in liquidity and performance to the market as it could atract local and international investors to the UAE’S financial markets.”
The services Trader’s Hub provides are built with the needs of investors in mind. We have the necessary options to make it possible for traders to adoptwhatevertradingstrategyirrespectiveoftheir level of funding or appetite for risk. In this regard, we provide multiple trading plaforms to make sure investors find the right fit for their trading style.
Most importantly, we have built our business around Traders’ Hub’s strong corporate values and hyper-focused vision to become the market leader.