Salik Company will launch its initial public offering (IPO) tomorrow (September 13). It is expected to witness strong demand from both retail and institutional investors and is likely to be oversubscribed.
Analysts say that the Dubai road toll operator’s plan to allocate all of its profits for shareholder payout will stand it in good stead and attract heavy subscriptions from local and foreign investors.
Dubai government earlier announced that it plans to sell shares in 10 public sector companies to boost the market capitalisation of the local stock market to Dh3 trillion.
Salik will be the third company after the Dubai Electricity and Water Authority (Dewa) and Tecom Group to list shares on the Dubai Financial Market. Both the previous IPOs saw strong demand and oversubscription. And Salik IPO is likely to attract a good response, too, if not better.
First in GCC?
Dubai’s road toll operator will sell 1.5 billion shares or 20 per cent of the stake. Comprising individual subscribers, professional investors and eligible employees, the subscriptions will open on September 13 and end on September 20 for retail investors and till September 21 for qualified investors. The company is likely to list on the Dubai Financial Market (DFM) around September 29.
Emirates NBD bank will be the lead receiving bank for the IPO. Other banks are Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, MBank and Sharjah Islamic Bank.
The road toll operator can also roll out the “dynamic pricing” model in the future.
Asset-light business modelSource: