Starting Monday, government owned road toll operator Salik shared 1.5 billion shares, or 20% of the company's market value, to new investors through an initial public offering (IPO) at AED 2 per share. Individual subscribers, qualifying Salik workers, and professional or institutional investors may subscribe between September 13 and September 20, and between September 21 and September 23, respectively.
Salik announced on Tuesday that it chose to announce the final offer price, rather than a price range, at the beginning of the subscription period on September 13. Salik had previously planned to finalize a per share offer price on September 22, a week before the shares are anticipated to be traded on the Dubai Financial Market (DFM).
Final initial public offering price set at AED 2 per share
-
Salik, which changed its status from a private joint stock company to a public one in June, will become the third state owned business to float its shares this year.
-
DEWA, a provider of water and electricity, and TECOM Group, a manager of business parks, are the other two companies that have already gone public.
-
On Tuesday, Salik said that it had reached an agreement on a final per share price of AED 2, which entails valuing Dubai's sole toll gate operator at AED 15 billion and raising AED 3 billion ($817 million) through an initial public offering. TECOM raised $463 million AED 1.70 billion) in contrast to DEWA's $6 billion (AED 22 billion) in proceeds from its IPO.
-
Investors will profit from payouts in the form of dividends by making an investment and joining the company as a shareholder. All of the company's income will be used to reward shareholders, who will receive dividend payments twice a year in April and October.