Dubai: Salik IPO oversubscribed 49 times, rakes in over Dh184 billion
Numbers imply an oversubscription level of 49 times for all tranches combined as tollgate operator’s sees overwhelming demand
Salik Company, Dubai’s exclusive tollgate operator, on Thursday said its initial public offering (IPO) saw overwhelming demand across all tranches.
Demand for the IPO was in excess of Dh184.2 billion ($50.2 billion), implying an oversubscription level of 49 times, for all tranches combined. The qualified investor tranche attracted demand across the globe of Dh149.5 billion, implying an oversubscription level of 43 times (excluding cornerstone, the oversubscription level stands at 52 times).
The retail offering saw tremendous appetite from the local investors with demand collected in excess of Dh34.7 billion, implying oversubscription levels of 119 times.
Investors that participated in the offering will be notified of their allocation of shares via SMS on September 26, 2022.
The company had upsized its offering size to 1,867,500,000 ordinary shares, equivalent to 24.9 per cent of total issued share capital, along with the offer price of Dh2 per ordinary share. This results in total gross IPO proceeds of over Dh3.7 billion ($1 billion) to be paid to the Government of Dubai.
“This reflects the trust and confidence from the global investor community in Dubai’s capital markets and the strong position of the company as Dubai’s exclusive tollgate operator, in addition to its effective regulatory framework and robust business model, which will enable the Company to continue to remain at the heart of expansion plans in the road and transport sector, in support of the Emirate’s economic growth,” said Mattar Al Tayer, Chairman of Salik.
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, said: “This listing is a key step in Dubai’s privatisation programme and its broader plans to attract foreign investment.”
Following the completion of the Salik IPO, the Government of Dubai will continue to own 75.1 per cent of Salik’s share capital. UAE Strategic Investment Fund (through Emirates NBD AM SPC), Dubai Holding, Shamal Holding, and the Abu Dhabi Pension Fund (ADPF), collectively subscribed for 16.2 per cent of the final Offer Size.
Subject to certain customary exceptions, the Cornerstone Investors’ shares are subject to a 180-day lock-up arrangement, following listing.
Trading on DFM is due to commence on September 29, 2022, under the symbol “Salik” with a market capitalization at the listing of $4.1 billion.