Dubai’s road-toll operator Salik officially opened its IPO subscription on September 13. The price for the IPO has been set at Dh2 per share, implying a market capitalisation of Dh15 billion.
The subscription period will be open from September 13 until September 20 for individual subscribers and eligible Salik employees, and until September 21, for professional or institutional investors. The company is likely to list on the Dubai Financial Market (DFM) on September 29.
Salik IPO share price set at Dh2
Based on an announcement made on Tuesday, Salik said it agreed on a final per-share price of Dh2, which implies a total valuation of Dubai’s exclusive toll gate operator at Dh15 billion and an IPO of Dh3 billion ($817 million).
It will sell 1.5 billion shares — or 20 per cent of its equity capital. The Dubai government, the owner of the Salik Company, reserves the right to increase the size of the offering at any time prior to the end of the subscription period.
Why should you invest in Salik IPO
Salik is the exclusive operator of Dubai’s automatic road toll collection system which currently manages eight gates, in addition to any new gates in the emirate through a concession agreement lasting 49 years.
Furthermore, the company’s business model is characterized by its low capital expenditures and cash transfer margins, which are among the best in its industry. In addition, the company has many opportunities to expand in the UAE and abroad, which will contribute to increasing its size, operations and activities.
Salik will pay out dividends in April and October each year. The company will pay its first dividend for the second half of 2022 by April 2023. The company also plans to pay 100% of net profit available for distribution as dividend from 2023 onwards.
Currently, there are eight toll gates and three million registered vehicles, out of which 1.8 million are registered in Dubai. Salik reported Dh1.69 billion in revenues in 2021 and Dh94.9 million in the first half of 2022.
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How to invest in Salik IPO
Investors can subscribe to the IPO through 11 banks: Emirates NBD, 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. They would need a National Investor Number (NIN), fill out the relevant fields and specify the amounts, before authorising their applications.
1. Emirates NBD
Dubai’s largest bank Emirates NBD will be the lead receiving bank for the IPO.
For Account holders
They can subscribe through the bank’s Internet banking, app or ATMs. “Eligible persons can access Emirates NBD Bank’s ATMs with their debit card, and online banking or mobile banking application using their relevant username and password. This will be deemed sufficient for the purposes of identification,” the bank says on the Salik IPO website.
For Non-account holders:
Subscribers within or outside UAE can visit the website https://IPO.EmiratesNBD.com and pay through online banking via the UAE Central Bank Payment Gateway (PGS) or through UAE Central Bank Fund Transfer (FTS) or SWIFT.
2. Emirates Islamic
Account holders: They can subscribe through the bank’s Internet banking, app or ATMs.
Non-account holders: Not eligible via the bank’s electronic subscription channels.
The bank has listed four steps:
a) Customers can visit the https://www.adcb.com/salik and click on the IPO subscription link.
b) Complete login authentication using UAE Pass or (customer ID, mobile number and OTP).
Account holders: Existing customers can digitally submit their IPO subscription requests, generate NINs and open a brokerage account with Mashreq Securities real-time through the app.
Non- account holders: Non-customers can do the above by first opening their Mashreq NEO account instantly through the app.
Subscribers can visit https://www.bankfab.com/en-ae/cib/iposubscription and follow the instructions.
Clients can use the bank’s app.
Accounts holders can subscribe through the bank’s Internet banking and app.
7. Ajman Bank
Account holders can subscribe through the bank’s online banking or “participating branches”.
Subscription applications through Al Maryah Community Bank LLC will only be accepted if made by UAE residents.
They can be made via the bank app or Internet banking.
NINs can be issued via the app.
The IPO is open to all CBD account holders.
Account holders can login to their online banking portal and submit their interest. A dedicated team will “then contact the client and complete the requirements, including opening up of CBD FS brokerage account”.
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10. Dubai Islamic Bank
The bank has listed a number for customers to call: +971 4 609 2222
11. Sharjah Islamic Bank
The bank has listed a number for customers to call: +971 6 599 9999
c) Enter NIN number.
d) Select broker, enter subscription amount, select account and submit.