vDubai's exclusive tollgate operator, Salik Company, announced the offer price and subscription period for its Initial Public Offering (IPO) on the Dubai Financial Market (DFM), expecting to raise $817 million.
The price offering has been set at $0.5 per share, implying a market capitalization at a listing of $4 billion.
The company plans to offer a total of 1,500,000,000 ordinary shares, representing 20 percent of Salik's total issued share capital, with the Selling Shareholder reserving the right to increase the size of the Offering at any time before the end of the subscription period at its sole discretion, subject to applicable laws and approval of the Securities & Commodities Authority (the SCA).
All shares to be offered shall represent the sale of existing shares held by the Government of Dubai.
Emirates' WAM news agency explained that the Offering is available to individuals and other investors in the UAE as defined in the prospectus in Arabic and referred to as "First Tranche" subscribers.
Certain eligible employees (the Eligible Employees) as defined in the UAE prospectus and referred to as "Third Tranche" subscribers; an offering to professional investors and other investors in several, including in the UAE, outside the United States in reliance on Regulation S and referred to as "Second Tranche" subscribers.
As part of the Qualified Investor Offering, and following both the Companies Law and the Dubai Law, five percent of the Offering will be reserved for the offer to the Emirates Investment Authority (EIA), and five percent of the Offering will be reserved for providing to the Pensions and Social Security Fund of Local Military Personnel.
The IPO subscription period runs until Sept. 20 for the UAE Retail Offering and Sept. 21 for the Qualified Investor Offering.
The Offering and Admission completion is expected to take place on Sept. 29, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including support of Admission to listing and trading on the DFM.
Salik CEO, Ibrahim al-Haddad, said the company plays a vital role in Dubai's urban development plans.
Haddad explained that Salik's growth is coupled with the city's growth in general, and this Offering provides an essential opportunity for investors to be part of that journey.
"We are delighted by the strong interest we have received since announcing our intention to float."
Haddad indicated that investing in the company represents a unique opportunity for institutions and individuals alike, as a technologically advanced core infrastructure asset positioned to benefit from Dubai's expansion plans and given its unique capex-light business model.
