Home Stock list Dubai road toll operator Salik to sell 20% of its shares through an IPO – document

Dubai road toll operator Salik to sell 20% of its shares through an IPO – document

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DUBAI, Sept 5 (Reuters) – Dubai road toll operator Salik said on Monday it was selling 20% ​​of the company through an IPO and targeting listing by the end of September.

Salik, which was transformed into a private stock company in June, is selling 1.5 billion shares, according to the prospectus. The offer price will be confirmed on September 22 and a listing is expected around September 29, he said.

The company, which was launched in 2007 and has 3.6 million vehicles registered on the toll system, is seeking to raise around $1 billion for stock, implying a $5 billion valuation, sources said. sources at Reuters.

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It is the latest state-controlled company to announce a public sale of shares as part of a government initiative to list 10 state-linked companies.

DEWA, ​​Dubai’s electricity and water utility, raised $6.1 billion in its April IPO, while the business park operator raised $463 million in June.

Salik, which means “open” or “clear” in Arabic, plans to pay a dividend for the second half of 2022 by April next year. The company also plans to pay out 100% of distributable net income as a dividend from 2023.

Salik said he could introduce so-called dynamic pricing which could see, for example, higher toll rates for the use of specific lanes or use during peak hours to potentially reduce congestion.

Salik reported a base profit of 800 million dirhams ($217.82 million) in the first half of this year, compared to 637.41 million in the same period of 2021.

Its IPO has three tranches, one offered to individuals, the second offered to professional investors and the third to employees. The Emirates Investment Authority, a federal sovereign wealth fund, will be allocated 5% of the shares.

Dubai’s Emirates NBD (ENBD.DU), Goldman Sachs (GS.N) and Bank of America (BAC.N) are the global co-coordinators of the deal, while Citigroup (CN), Egypt’s EFG-Hermes (HRHO.CA) and HSBC (HSBA.L) are joint bookrunners, according to the document.

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Reporting by Hadeel Al Sayegh; additional writing by Alexander Cornwell, editing by Muralikumar Anantharaman, Uttaresh.V and Emelia Sithole-Matarise

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