Salik Company, Dubai’s exclusive toll gate operator, today announced its intention to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
In a statement on Monday, Salik stated that one billion five hundred million (1,500,000,000) shares each with a nominal value of AED0.01 will be made available in the Offering, representing 20% of Salik’s total issued share capital.
It added that the offering comprises Individual Subscribers (first tranche); Professional Investors (second tranche), and Eligible Employees (third tranche). The subscription period will open on 13th September 2022 and is expected to close on 20th September 2022 for UAE Retail Investors and on 21st September 2022 for Qualified Investors.
The Government of Dubai, represented by the Department of Finance, (the “Selling Shareholder”), reserves the right to amend the size of the Offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the Securities & Commodities Authority (the “SCA”).
The Internal Sharia Supervision Committee of Emirates NBD Bank has issued a Shariah pronouncement confirming that, in its view, the Offering is compliant with Shariah principles. Admission is expected in September 2022 The share capital of the Company, as at the date of the listing (the “Listing”), has been set at AED75,000,000, divided into 7,500,000,000 Shares paid-in-full, with the value of each Share being AED0.01.
Following the Offering, the Company intends to pay dividends twice, in April and October of each fiscal year. The Company expects to pay a first dividend for the second half of 2022 by April 2023, and it expects to pay 100% of the net profit, after keeping aside the statutory reserves required by law (statutory reserves expected to amount to AED37.5 million for the first dividend).
From 2023 onwards, the Company expects to pay 100% of the net profit available for distribution as dividend. This dividend policy is subject to consideration by the Board of Directors of the cash management requirements of the Company’s business for operating expenses, interest expenses and anticipated capital expenditures and investments.
In addition, the Company expects that the Board will also consider market conditions, the then current operating environment in the Company’s markets, and the Board’s outlook for the Company’s business and growth opportunities.