All the shares offered in the IPO of Salik were covered in the Dubai market, within a few hours of the start of the IPO.
According to Arabiya Net, the IPO was covered at the offer price on the full size of the deal today, Tuesday, according to the terms of the deal.
The speed with which all the IPO shares were covered indicates that the demand for listings in the Middle East remains strong.
The main investors in the IPO - the UAE Strategic Investment Fund, Dubai Holding, North Holding, and the Abu Dhabi Pension Fund - pledged to inject up to 606 million dirhams into the offering.
According to a statement issued by Salik, today, Tuesday, the price of the offering was set at two dirhams per share, while the total size of the offering is expected to be 3 billion dirhams (817 million dollars), or 20% of the company’s capital (equivalent to 1.5 billion shares of its shares). This puts the company's market value at 15 billion dirhams ($4 billion).
Salik will be the fourth listing on the Dubai market since the beginning of this year, after the Dubai Electricity and Water Authority DEWA, TECOM Group and Union Coop. The IPO is testing investor appetite at a sensitive time for a listing in the Middle East. After a record start this year, the Dubai market has begun to fluctuate in the face of economic challenges and weak oil prices, with Dubai Electricity and Water Authority (DEWA) and TECOM Group reporting poor performance in recent months.
Salik shares offered for subscription were divided into three tranches, one of which was allocated to individuals, to which 7% of the offered shares were allocated, compared to 92% for qualified investors, which represents the second tranche, and 1% for qualified Salik employees.
The period specified for the first and third tranches (individuals and employees) ends on September 20, 2022, while it extends for the second tranche (Qualified Investors) until the end of September 21, 2022.
It is expected that the shares will be fully listed and traded on the Dubai Financial Market on September 29, 2022.
After completing the offering, SALIK intends to distribute dividends twice in each fiscal year after the offering, in April and October of each year.
The company expects to distribute the first profits for the second half of 2022 by April 2023, while it expects to distribute 100% of the net profit, after maintaining the legal reserve required by law, and the legal reserve is expected to reach 37.5 million dirhams before distributing the first profits.
From 2023 onwards, the Company expects to pay 100% of the net profit distributable as dividend. The dividend policy is subject to several considerations considered by the Board of Directors in consideration of the cash management requirements of the Company's business in relation to operating expenses, financing costs, projected capital expenditures and investments.
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 before the end of the subscription period at its absolute discretion and based on the applicable laws and after the approval of the Securities and Commodities Authority.
The company's capital, as on the date of listing, was set at 75 million dirhams, divided into 7.5 billion fully paid shares, and the value of each share is 0.01 dirhams.
