According to the Dubai-based newspaper Gulf News on Tuesday, the initial public offering of Dubai road toll operator Salik was priced at 2 dirhams per share, valuing the issue at roughly 3 billion dirhams ($817 million).
Salik is the third state-affiliated firm to apply for a listing in Dubai this year as part of a push to draw investors to the local stock market.
The Abu Dhabi Pension Fund, Dubai Holding, Shamal Holding, and the UAE Strategic Investment Fund have all made significant investments totaling roughly 606 million dirhams, according to the study.
The publication claimed that Salik’s offer price was made public through advertisements in local media and came about as a result of investor interaction that showed large, strong first demand indications from both local and foreign investors.
Sheikh Maktoum Bin Mohammed, the vice ruler of Dubai, revealed intentions in November to transform Salik, which was a subsidiary of the Roads and Transport Authority (RTA) at the time, into a public corporation. In order to increase stock market activity, Salik and nine other firms with ties to the government were listed.
The 2007-founded Salik, which has 3.6 million registered vehicles on its toll system, is offering 1.5 billion shares.
Ibrahim Al Haddad, the chief executive officer of Salik, told media in an interview last week that the company had a series of investor meetings prior to the IPO, which validated investor interest in the offering and expectations.
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