Dubai may increase Salik IPO to 25% over high demand - GulfToday

Dubai may increase Salik IPO to 25% over high demand

Cars drive under a ‘toll gate’ sign on Sheikh Zayed Road, one of the  busiest in Dubai.  Agence France-Presse

Cars move at a slow pace through the Al Barsha Tollgate in Dubai.

Gulf Today Report

Dubai is considering increasing the size of the initial public offering of Salik in light of the demand that exceeded expectations in the first offering, according to Bloomberg.

The sources, who declined to be identified, indicated that a study is underway whether to sell up to 1.875 billion shares, or 25% in the company, noting that the initial plan was to offer a 20% stake, equal to 1.5 billion shares.

After setting the price of the offering at 2 Dirhams per share, and after selling all the shares offered within hours of the opening of the public offering on Tuesday, the advisors on the deal worth 3 billion dirhams recommended increasing the size of the offering to 3.75 billion dirhams.

In turn, a Salik spokesperson said the company is evaluating its options, and declined to comment further until a decision is made.

The IPO is an important and exciting time for Salik. It gives the platform to build on the success as the exclusive toll operator of Dubai’s road network and support the vision of our wise leadership to make Dubai the best city in the world to live in and achieve the goals of the Dubai 2040 Urban Master Plan.

Dubai is now one of the fastest growing cities in the world, with a population expected to grow by 70% over the next twenty years, from 3.4 million in 2020 to 5.8 million in 2040.

The road network and related infrastructure will be vital for Dubai's next phase of growth; and Salik is well placed to meet the mobility needs of the future.

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