The Dubai government is increasing its offer size on the ongoing listing of its road toll operator Salik after a stronger-than-expected demand, it has been confirmed.
The offering is being bumped from the initial 1.5 billion shares or 20 percent of the share capital, to 1.87 billion shares or 24.9 percent.
Subscription to the initial public offering’s first and third tranches – for retail and qualified investors – will still end on September 20 and 21 respectively.
The retail tranche will increase from 120 million shares to 145.7 million shares. For the third tranche, the offer size will be 1.72 billion shares from 1.38 billion.
After the IPO, the Dubai government will own 75.1 percent of the road toll operator.
“The new offering size was determined by the Selling Shareholder, following Salik’s decision to set the offer price at AED2 per ordinary share on September 13, 2022, providing investors with a highly attractive value proposition,” the company said in a statement.
The company’s expected market capitalisation is around AED15 billion ($4.1 billion), after it lists on the Dubai Financial Market.
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