Picture used for illustrative purposes.

Gulf Today Report

Salik would raise up to one billion dollars from offering 20% of the company to the public offering, which means the company's valuation at $5 billion (Dhs18.35 billion), according to Reuters and Bloomberg sources.

Salik said that it would provide 1.5 billion shares with a nominal value of Dhs0.01 per share during the subscription process.

The Dubai government, represented by the Department of Finance, expects to sell 20% of the total issued capital of Salik, with the selling shareholder retaining the right to amend the size of the offering at any time before the end of the subscription period at its absolute discretion and based on the applicable laws and after the approval of the Securities Authority and goods.

Moreover, as part of the offering of qualified investors, and in accordance with both the Companies Law and Dubai Law: 5% of the shares of the offering will be reserved for the Emirates Investment Authority, and 5% of the shares of the offering will be reserved for the Pension and Social Security Fund for the local military.

The subscription period for individuals in the UAE is expected to extend from Sept.13-20, 2022, while the subscription period for qualified investors will extend from Sept.13-21, 2022. The offering price per share will be determined during and after the process of building the subscription order book. Participants in the offering of individual investors in the UAE will subscribe at the offer price.

The offering and acceptance of listing is currently expected to be completed in September 2022, based on market conditions and after obtaining relevant regulatory approvals in the UAE, including approval for listing and trading on the Dubai Financial Market.

Under a subscription guarantee agreement concluded prior to the date of listing (“subscription guarantee agreement”) between the company, the selling shareholder and the joint subscription registry managers, the shares held by the selling shareholder are subject to a ban period starting from the date of the subscription guarantee agreement and ending 180 calendar days from the date of listing, including a “blocking period”, Except for the permitted concessions, as stated in the prospectus. The company will also be subject to a ban period, according to the prospectus.