DUBAI, Sept 13 (Reuters) – Dubai road-toll operator Salik priced its initial public offering at 2 dirhams a share, according to Dubai-based daily Gulf News on Tuesday, valuing the issue at around 3 billion dirhams ($817 million).
Salik is the third state-linked entity to seek a listing this year in Dubai, in a programme aimed at attracting investor interest in the domestic stock exchange.
Cornerstone investors UAE Strategic Investment Fund, Dubai Holding, Shamal Holding and the Abu Dhabi Pension Fund, have committed about 606 million dirhams, the report said.
Salik’s offer price was announced through advertisements in local media, and was determined following investor engagement that saw significant strong initial demand indications from both local and international investors, the newspaper added.
Dubai’s deputy ruler, Sheikh Maktoum Bin Mohammed, announced plans in November to turn Salik, then a division of the Roads and Transport Authority (RTA), into a public company. The listing of Salik and nine other government-linked entities was intended to boost stock market activity. Read full story
Salik, which was launched in 2007 and has 3.6 million vehicles registered on the toll system, is selling 1.5 billion shares.
Salik had a series of investor meetings ahead of the IPO, which confirmed appetite for the offering and expectations from investors, its Chief Executive Officer Ibrahim Al Haddad told Reuters in an interview last week. Read full story
($1 = 3.6727 UAE dirham)
(Reporting by Hadeel Al Sayegh; Writing by Enas Alashray; Editing by Rashmi Aich)