“Salik” subscription: 49 times covered and 184 billion dirhams raised

The IPO of the UAE's Salik shares on the Dubai Financial Market was more than 49 times oversubscribed across all segments, as the value of the coverage exceeded 184.2 billion dirhams ($ 50.2 billion).

According to Arab Net, the company explained in a statement that the individual subscription segment attracted 119 times more requests than the supply, as the demand for subscription exceeded 34.7 billion dirhams.

The qualified investors segment attracted huge demand from all over the world, amounting to 149.5 billion dirhams, indicating an increase in the demand for subscription by 43 times (excluding the core investors, where the subscription requests exceeded 52 times).

The company indicated that the offering attracted huge interest among the international and local investor community with oversubscription of the qualified investors segment by 52 times (excluding the core investors).

Salik shares are expected to start trading on the Dubai Financial Market on September 29, 2022 under the symbol SALIK, with a market capitalization of 15 billion dirhams ($4.1 billion).

The company confirmed the previously announced size of the offering after an increase of 1.867 billion of ordinary shares, equivalent to 24.9% of the total issued shares in the capital of Salik, with the share price of 2.00 dirhams per ordinary share, which resulted in total revenues of more than 3.7 billion dirhams (one billion dirhams). dollars) payable to the Government of Dubai represented by the Department of Finance (the selling shareholder) after adjusting for any costs related to the offering.

After the completion of the initial public offering of Salik, the Dubai government will retain ownership of 75.1% of the company's capital. The UAE Strategic Investment Fund (through Emirates NBD AM SPC), Dubai Holding, North Holding, and Abu Dhabi Pension Fund (together referred to as Core Investors), have subscribed to 16.2% of the offered shares. Subject to certain customary exceptions, shares owned by all major investors will be subject to a 180-day no-trading period, after the company is listed.

As part of the Qualified Investors Offering, and in accordance with both the Companies Law and Dubai Law, 5% of the Offer Shares will be reserved for the Emirates Investment Authority and 5% of the Offer Shares will be reserved for the Pension and Social Security Fund for local military personnel.