On September 13, Salik, a government owned toll operating institution in Dubai, started receiving IPO subscriptions. Assuming a market capitalization of AED 15 billion, the pricing for the IPO has been fixed at an exclusive AED 2 per share.
Individual subscribers and qualifying Salik workers may subscribe between September 13 and September 20, while professional or institutional investors may sign up until September 21. The company will probably go public on September 29 on the Dubai Financial Market (DFM).
Today Dhanguard will shed light on the topic of Dubai Salik IPO, explaining how you can make the most out of this exclusive opportunity in the UAE. So without any further ado, let’s learn!
Prices set at AED 2 for Salik IPO shares!
According to a statement published on Tuesday, Salik stated that it has reached an agreement on a final per share price of AED 2, which assumes a total valuation of AED 15 billion for Dubai's exclusive toll gate operator and an IPO of AED 3 billion ($817 million).
20% of its equity capital, or 1.5 billion shares, will be sold. Owner of the Salik Company and resident in Dubai, the Dubai government maintains the right to raise the amount of the offering at any moment before the subscription period has ended.
The Dubai Salik IPO: Why should you invest in it?
With a concession arrangement that lasts 49 years, Salik is the sole operator of Dubai's automated road toll collecting system, which now oversees eight gates in addition to any additional gates that are constructed in the emirate.
The business model of the company is also distinguished by its low capital expenditures and cash transfer margins, which rank among the best in the sector.
Additionally, there are several prospects for the business to grow both domestically and internationally, which will help it develop its operations and activities as well as grow in size.
Every year, Salik will distribute dividends in April and October. The first dividend for the second half of 2022 will be paid by the corporation by April 2023.
From 2023 forward, the firm intends to pay a dividend equal to 100% of the net profit that is available for distribution.
Eight toll gates and three million registered vehicles exist at the moment, of which 1.8 million are registered in Dubai.
Another enticing fact is that Salik earned a revenue of AED 1.69 billion in 2021 and AED 94.9 million in the first half of 2022.
How can I invest in the Dubai Salik IPO?
Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, MBank, and Sharjah Islamic Bank are among the banks through which investors can subscribe to the IPO. Before approving their applications, they would require a National Investor Number (NIN), the completion of the necessary steps, and the specification of the amounts.
We have mentioned the procedures of some of the banks for your reference which are mentioned below:
The bank has stated below mentioned steps which are the following:
The Customers will have to visit the https://www.adcb.com/salik and click on the IPO subscription link.
Then they will be required to complete login authentication using UAE Pass or (customer ID, Contact number and OTP).
With the help of the app, current customers can instantly register a brokerage account with Mashreq Securities and digitally submit their IPO subscription requests. They can also produce NINs.
Non Account Holder
To perform the aforementioned steps, Non Account must first open an immediate Mashreq NEO account through the app.
They can sign up through the bank's app, Internet banking, or ATMs.
Non Account Holders
They are ineligible to subscribe electronically through the bank.
Emirates NBD, the biggest bank in Dubai, will serve as the IPO's main receiving bank.
They can sign up using the bank's ATMs, smartphone, or online banking. "Eligible individuals can use their debit card to access Emirates NBD Bank ATMs, and they can log into the bank's online or mobile banking applications using the appropriate username and password. According to the bank's statement on the Salik IPO website, this will be considered adequate for identification reasons.
Non Account Holders
The UAE Central Bank Payment Gateway (PGS), the UAE Central Bank Fund Transfer (FTS), or SWIFT are available for subscribers to use to make payments when they visit the website https://IPO.EmiratesNBD.com from within or outside the UAE.
Follow the instructions by going to https://www.bankfab.com/en-ae/cib/iposubscription for FAB Subscribers.
Customers have the facility to access the bank's app.
The IPO is accessible to all CBD account holders.
The interest form can be submitted by account holders by logging into their online banking portal. When all necessary steps have been taken, including opening a CBD FS brokerage account, a committed staff will get in touch with the client.
Only UAE citizens who submit their subscription requests through Al Maryah Community Bank LLC will have their requests accepted.
The bank app or online banking can be used to make them.
Through the app, NINs may be issued.
What is the required minimum investment for a potential Salik investor?
Although the minimum subscription amount for Salik workers and individual investors has been set at AED 5,000, any further deposits can be made in lots of at least AED 1,000. The base subscription amount for institutional investors has been established at Dh1 million. There is no upper limit, and each subscription will be guaranteed a minimum of 1,000 shares.
Prospective investors can subscribe for or purchase shares, however, those looking to book shares can send in their subscription forms via their respective banks and indicate their interest in doing so.
After September 20, neither Salik personnel nor individual investors will be able to subscribe for or purchase additional shares before trading starts. Similar to this, professional investors or institutions will have their assets assigned on September 21 and will not be able to subscribe for or purchase any additional shares on that day.
On September 27, you will receive an SMS notification of the final and official allocations if you are a private investor or a Salik employee subscribing to Salik shares.
The investment in Dubai Salik IPO can be a great supplemental factor for your Investment Portfolio as the shares are being offered at a very low cost and the returns expected are extremely high as Salik is a profitable institution. You can visit our Head Office in Dubai if you encounter any doubts or problems with respect to making investment in Salik. Our Team of Experts will thoroughly guide you. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our Website as well