Emirates News Agency – ‘Salik’ announces plans to enter Dubai Financial Market

DUBAI, 5th September, 2022 (WAM) — Salik Company, Dubai’s exclusive tollgate operator, today announced its intention to conduct an initial public offering (IPO) and list its ordinary shares for trading on the Dubai Financial Market (DFM).

In a statement on Monday, Salik said that one billion five hundred million (1,500,000,000) shares each with a par value of AED 0.01 will be made available under the Offer, representing 20 % of Salik’s total issued share capital.

She added that the offer includes Individual Subscribers (first tranche); Professional Investors (second tranche) and Eligible Employees (third tranche). The subscription period will open on September 13, 2022 and is expected to close on September 20, 2022 for UAE retail investors and September 21, 2022 for qualified investors.

The Government of Dubai, represented by the Ministry of Finance (the “Selling Shareholder”), reserves the right to vary the size of the Offering at any time prior to the end of the Subscription Period, at its sole discretion, subject to subject to applicable laws. and the approval of the Securities & Commodities Authority (the “SCA”).

Emirates NBD Bank’s internal Shariah Oversight Committee has issued a statement on Shariah confirming that in its view the offer complies with Shariah principles. Admission is expected in September 2022. The share capital of the Company, as of the date of listing (the “Announcement”), has been set at AED 75,000,000, divided into 7,500,000,000 fully released, the value of each Share being AED0.01.

Following the Offering, the Company intends to pay dividends twice, in April and October of each financial year. The Company expects to pay a first dividend for the second half of 2022 by April 2023, and it expects to pay out 100% of net profit, after setting aside the legal reserves required by law (legal reserves are expected to be to AED 37.5 million for the first dividend).

From 2023, the Company plans to pay out 100% of the net distributable profit as a dividend. This dividend policy is subject to review by the Board of Directors of the Company’s corporate cash management requirements for operating expenses, interest expense and planned capital and investment expenditures.

In addition, the Company expects the Board to also review market conditions, the operating environment then prevailing in the Company’s markets and the Board’s outlook regarding the Company’s business and growth opportunities.

Mattar Al Tayer, Chairman of the Board of Salik, said: “Thanks to the wise leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, Dubai has managed to chart an economic course clarity and an ambitious growth plan that includes attracting direct strategic investments. »

He added: “Last June, His Highness Sheikh Mohammed bin Rashid enacted Law No. oday is a continuation of the privatization program pursued by the emirate of Dubai and its project to double the size of its financial market to three trillion dirhams and to attract foreign investment. Salik has played a central role in traffic management in Dubai for 15 years and will continue to remain at the heart of expansion plans in the road and transport sector, in support of the Emirate’s economy.”

The Chairman further stated that the company is in a prime position to benefit from additional growth opportunities and is designed to ensure efficient operations. It is underpinned by an effective regulatory framework that supports future growth and a business model that requires low capital expenditure. It also boasts cash conversion margins that are considered best in class.

Al Tayer pointed out that the road and transport network infrastructure in the emirate of Dubai, which is based on state-of-the-art technology, is one of the best in the world, and that the road network has retained the first position. in terms of road quality worldwide for several years.

Ibrahim Sultan Al Haddad, CEO of Salik, said: “As the exclusive toll operator in Dubai, Salik is a truly iconic brand that offers investors a unique opportunity to access Dubai’s exciting growth story in exposing themselves to a high quality infrastructure. Salik’s bespoke technology facilitates the frictionless and affordable movement of residents and tourists between Dubai’s many iconic destinations. »

He added: “The initial public offering represents an important step in Salik’s journey as it provides the company with the opportunity to consolidate its success as the exclusive toll operator in Dubai, currently operating eight gates across strategic locations across the busiest areas. The long-term principles and values ​​of the company are centered on customers, the environment, human capital and modern technologies.

“At the community level, Salik offers exemptions and subsidies for determination vehicles, public transport and school buses. Salik’s focus on people extends to improving the customer experience and developing human capital, emphasizing the values ​​of equality and inclusion.

The Government of Dubai, represented by the Ministry of Finance, plans to sell 20% of Salik’s total issued share capital (equivalent to a total number of 1,500,000,000 shares), with the selling shareholder retaining the right to change the size of the Offer at any time prior to the end of the subscription period in its sole discretion, subject to applicable laws and the approval of the SCA.

In addition, in connection with the Offer to Qualified Investors, and in accordance with both the Companies Act and Dubai Law, the following provisions will apply: five per cent of the Offer will be reserved for offered to the Emirates Investment Authority (the “EIA”), and; five percent of the Offering will be reserved for offering to the local Military Personnel Pension and Social Security Fund (the “Fund”).

The subscription period for the UAE Retail Offering is expected to run from September 13, 2022 to September 20, 2022, with the subscription period for the Accredited Investor Offering expected to run from September 13, 2022 to September 21, 2022. offer price per Share (the “Offer Price”) will be determined through and following a book-making process. Investors participating in the UAE Retail Offering will subscribe for Shares at the Offering Price.

Completion of the offering and admission is currently expected to occur in September 2022, subject to market conditions and receipt of relevant regulatory approvals in the UAE, including approval for listing and trading on the DFM.

Pursuant to an Underwriting Agreement to be entered into between the Company, the Selling Shareholder and the Joint Bookrunners prior to the date of Admission (the “Underwriting Agreement”), the Shares held by the Selling Shareholder will be lock-up from the date of the Underwriting Agreement up to and including 180 calendar days from Listing (the “Lock-Up Period”), subject to certain permitted transfers as set out in the prospectus. The Company will also be subject to a Lock-up Period as set out in the prospectus.

Moelis & Company UK LLP DIFC Branch has been appointed independent financial adviser and Emirates NBD Capital PSC has been appointed financial adviser to Salik.

Emirates NBD Capital, Goldman Sachs International and Merrill Lynch International have been appointed Joint Global Coordinators and Joint Bookrunners.

Citigroup Global Markets Limited, EFG Hermes UAE Limited (acting jointly with EFG Hermes UAE LLC) and HSBC Bank Middle East Limited have been appointed Joint Bookrunners.

Emirates NBD Bank PJSC has been appointed lead receiving bank. 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 have also been named as receiving banks.

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