IPO will raise over USD 1.0bn marking another significant milestone for the Government of Dubai and DFM

Salik Company PJSC, Dubai’s exclusive toll gate operator, today announces the successful completion of the bookbuild and public subscription process for its initial public offering on the Dubai Financial Market.

The Company confirms the previously announced upsized offering size of 1,867,500,000 ordinary shares (“Offer Shares”), equivalent to 24.9% of total issued share capital, along with the offer price of AED 2.00 per ordinary share. This results in total gross IPO proceeds of over AED3.7bn ($1.0bn1) to be paid to the Government of Dubai represented by the Department of Finance (the “Selling Shareholder”) after adjusting for any expenses related to the Offering.

The Offering saw significant interest with total gross demand for the IPO in excess of AED184.2bn ($50.2bn1), implying an oversubscription level of 49 times, for all tranches combined. The Qualified Investor tranche attracted demand across the globe of AED149.5bn implying an oversubscription level of 43x (excluding cornerstone, oversubscription level stands at 52x). The retail offering saw tremendous appetite from the local investors with demand collected in excess of AED34.7bn implying oversubscription levels of 119x. The overwhelming investor demand for Salik shares underlines the Company’s compelling investment proposition as the exclusive toll operator of Dubai.

His Excellency Mattar Al Tayer, Chairman of Salik’s Board of Directors, expressed his pleasure with the strong investor interest in the offering and said: “This reflects the trust and confidence from the global investor community in Dubai’s capital markets and the strong position of the company as Dubai’s exclusive toll gate operator, in addition to its effective regulatory framework and robust business model, which will enable the Company to continue to remain at the heart of expansion plans in the road and transport sector, in support of the Emirate’s economic growth.”

Al Tayer added: “The IPO represents an important milestone in Salik’s journey and provides an opportunity to solidify the company’s success as an exclusive toll gate operator for the road network in Dubai and will contribute to improving the experiences of road users through its pivotal role in managing traffic and the future of mobility in the Emirate.”

Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, said: “This listing is a key step in Dubai’s privatisation programme and its broader plans to attract foreign investment. Having kept Dubai moving for 15 years, Salik is at the heart of the city’s economic expansion plans. The IPO builds on the Company’s legacy, and we are pleased to have seen strong demand for Salik shares both from local and international investors.”

Following completion of the Salik IPO, the Government of Dubai will continue to own 75.1% of Salik’s share capital. UAE Strategic Investment Fund (through Emirates NBD AM SPC), Dubai Holding, Shamal Holding, and the Abu Dhabi Pension Fund (ADPF) (together, the “Cornerstone Investors”), collectively subscribed for 16.2% of the final Offer Size. Subject to certain customary exceptions, the Cornerstone Investors’ shares are subject to a 180-day lock-up arrangement, following listing. Furthermore, as part of the offering to professional investors and other investors in a number of countries, including in the UAE, outside the United States of America in reliance on Regulation S (the “Qualified Investor Offering”), and in accordance with both the Companies Law and the Dubai Law, five percent of the Offering was reserved for offer to the Emirates Investment Authority (the “EIA”), and five percent of the Offering was reserved for offer to the Pensions and Social Security Fund of Local Military Personnel (the “Fund”).

Salik is expected to commence trading on the DFM on 29 September 2022, under the symbol “SALIK” and ISIN “AEE01110S227”. At listing, the Company will have a market capitalisation of AED15.0bn (US$ 4.1bn ).

Investors that participated in the offering to certain natural persons, companies, and establishments holding a national investor number with the DFM (the “UAE Retail Offering”) will be notified of their allocation of shares via SMS on 26 September 2022.

Emirates NBD Capital PSC was appointed as Financial Advisor to Salik while Moelis & Company UK LLP DIFC Branch was appointed as the Independent Financial Advisor to Salik.

Emirates NBD Capital PSC, Goldman Sachs International, and Merrill Lynch International were appointed as Joint Global Coordinators and Joint Bookrunners.

Citigroup Global Markets Limited, EFG Hermes UAE Limited (acting jointly with EFG Hermes UAE LLC), and HSBC Bank Middle East Limited were appointed as Joint Bookrunners.

Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, MBank, and Sharjah Islamic Bank were also appointed as Receiving Banks.

The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has issued a Shariah pronouncement confirming that, in its view, the Offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the Offering is Shariah compliant for their own purposes.