Tomorrow, Tuesday, the opening of the subscription for the initial public offering of Salik begins, in preparation for the listing of its ordinary shares for trading on the Dubai Financial Market, as the fourth listing in the market since the beginning of this year 2022 after the Dubai Electricity and Water Authority DEWA, TECOM Group and Union Cooperative.
The process of offering Salik consists of individual subscribers, the first tranche, professional investors, the second tranche, and qualified employees, the third tranche, and is expected to end on September 20 for individual investors in the UAE and on September 21 for qualified investors.
During the subscription process, Salik will provide about 1.5 billion shares with a nominal value of 0.01 dirhams per share, which represents 20% of the total issued shares in the capital of Salik.
The offering price per share will be determined during and after the process of building the subscription order book. Participants in the offering of individual investors in the UAE will subscribe at the offer price.
The offering and acceptance of listing is currently expected to be completed in September 2022, based on market conditions and after obtaining relevant regulatory approvals in the UAE, including approval for listing and trading on the Dubai Financial Market.
After completing the offering, Salik intends to distribute dividends twice in each fiscal year after the offering in April and October of each year, and the company expects to distribute the first dividends for the second half of 2022 by April 2023, while the company expects to distribute 100% of the net profit, after retaining The legal reserve required by law, and it is expected that the legal reserve will reach the amount of 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.
