Salik’s IPO to be commenced on 13th September
To boost the volume of trade in Dubai Emirate, the government has announced the sale of a 20% stake in a company, known as Salik. In this mammoth deal, the government will raise funding of about $1 billion through the sale of 1.5 billion shares through the Initial Public Offering (IPO) mechanism. The offering will commence on 13.09.2022, and the shares will be listed on the Dubai stock exchange on September 29.09.2022.
This is the 3rd IPO of this ongoing year and Salik’s IPO will test the appetite of the investors in the longer run. Since this IPO will have a considerable impact on the economic condition of the Emirate, our best lawyers of Dubai have shared their inputs on the same.
Must know about Salik
Salik is an automated road-toll collection system of the government which was announced in the year 2007. In this system, each and every vehicle passing through one of the city’s eight toll points, are required to pay 4 AED to a prepaid account. Since more than 60% population of the Emirate uses their private cars, it is a key asset of the government offering very high revenues. The net toll traffic grew at a compound annual growth rate of 5.5%.
Market Condition and Salik’s IPO
Our best lawyers in Dubai have pointed out that Salik enjoys a very good reputation in the market and the shareholders will get benefitted from it. It has a very strong cash flow and liquidity with a great expansion prospectus. To attract investors, the firm plans to pay dividends twice in a fiscal year. However, some important factors, such as escalating oil prices and equity inflows may raise the concern of possible recession. To mitigate this situation, the price slab of the shares will play a key role.
Talking about the need of announcing this IPO, our best lawyers of Dubai have pointed out that Dubai has witnessed a trend of nosediving trade volumes in the last few years. To reverse this trend, the government announced a plan to list 10-state owned firms and Salik is one of them to attract the investors’ community. Though the earlier IPOs of this year have yielded mixed results, there is an improvement in Dubai’s benchmark index.
Salik’s IPO is a very bright opportunity for the investors to get equity holding in this profitable venture having very strong cash flow and liquidity. However, the investors are strongly advised to carefully peruse all the material documents of the company, such as Article of Association (AOA) and Memorandum of Association (MOA). For this purpose, you can consult our best company lawyers of Dubai.
BSB legal is a full-service law firm of UAE. Our best lawyers will assist you in carrying out research, and advisory and handles other legal work pertaining to the issue of shares. To get more information, kindly contact one of our best lawyers in UAE. You can email us at email@example.com or call +971 5 08014003.