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