Dubai emirate’s road toll system ‘SALIC’ will raise 300 crore dirhams through share sale. Last week, the authorities made it clear that 20 percent of the company will be sold through an initial public offering. The sale, which started on Tuesday, was priced at Dh2 per share.
A total of 150 crore shares have been put up for sale. The sale will be held from September 13 to 20. 80 percent of the company will be retained under government control. But before the end of the subscription period, the government of Dubai, the owners of Salic Company, can increase the number of shares sold. After the sale, ‘Salik’ will be listed on the Dubai Financial Market on September 29.
Emirates NBD, Dubai’s largest bank, will be the lead acceptor bank for the IPO. Meanwhile, UAE Strategic Investment Fund, Dubai Holding, Shamal Holding and Abu Dhabi Pension Fund have signed the SALIC agreement as cornerstone investors. Cornerstone investors are those who invest upfront for a fixed number of shares. They have formed an agreement to buy shares worth 60.6 crore dirhams.
In March, Dubai had raised 22.41 billion dirhams through the IPO of Dubai Water and Electricity Department ‘Deva’. ‘Deva’ sold 8.50 billion shares. It is hoped that ‘Salik’ will also get a good response.