Tuesday September 06, 2022
Salik to maintain long-term access to capital markets: Mattar Al Tayer
Cars drive under a â€˜toll gateâ€™ sign on Sheikh Zayed Road in Dubai. Agence France-Presse
Mattar Mohammed Al Tayer, Chairman of the Board of Directors of Salik, said the company decided to list its shares in the Dubai Financial Market to ensure its long-term access to capital markets and allow investors to invest in premium assets.
In an interview with the Emirates News Agency (WAM), Al Tayer said that offering Salik shares in the Dubai Financial Market is part of the privatisation programme launched by the emirate, as well as its plan to double the value of Dubaiâ€™s financial markets and stock exchanges to Dhs3 trillion, in line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.
He then highlighted three major reasons for Salikâ€™s investment attractiveness.
Firstly, the company is the exclusive operator of Dubaiâ€™s automatic road toll collection system which currently manages eight gates, in addition to any new gates in the emirate through a concession agreement lasting 49 years.
The second reason is the companyâ€™s business model, which is characterised by its low capital spending and cash transfer margins, which is the best in its business category. The third reason is the many opportunities available for the company to expand in the UAE and abroad, which will contribute to increasing its size, operations and activities.
Any decision to expand the road toll system or add further gates will depend on the outcomes of the transport strategy being constantly revised by Dubaiâ€™s Roads and Transport Authority (RTA), Al Tayer added.
Salik currently owns eight gates distributed along Sheikh Zayed Road, which is the artery of the traffic in Dubai, as well as on Al Garhoud Bridge, Al Maktoum Bridge, Al Ittihad Road and the Airport Tunnel, which help facilitate the movement of 3.6 million registered vehicles, he further added, noting that 481 million journeys were registered through Salikâ€™s gates last year, whether they were tourists visiting Dubaiâ€™s tourist attractions or residents moving between the emirateâ€™s regions to carry out their daily activities.
The companyâ€™s future performance is expected to rely on its additional growth potential based on the positive results of its current activities, including advertising services and achieving traffic movement statistics-related revenues, as well as providing consultancy services to governments wishing to adopt toll gate systems, he noted, stressing that the company prioritises investment in technology to maintain its innovation-based leadership.
Dubaiâ€™s roads and transport infrastructure is the cornerstone of its economic development, he explained, affirming that Dubai is one of the fastest growing cities in the world, and its transport and infrastructure sector plays a key role in the emirateâ€™s development and enhancing its global stature as a business hub.
The Salik system offers a convenient digital solution for collecting traffic tariffs, with the ability to accommodate Dubaiâ€™s growing population, which is expected to rise from 3.3 million people in 2020 to 8.5 million people in 2040, Al Tayer said in conclusion.
Salik Company, Dubaiâ€™s exclusive toll gate operator, today announced its intention to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
In a statement on Monday, Salik stated that one billion five hundred million (1,500,000,000) shares each with a nominal value of AED0.01 will be made available in the Offering, representing 20% of Salikâ€™s total issued share capital.
It added that the offering comprises Individual Subscribers (first tranche); Professional Investors (second tranche), and Eligible Employees (third tranche). The subscription period will open on 13th September 2022 and is expected to close on 20th September 2022 for UAE Retail Investors and on 21st September 2022 for Qualified Investors.
The Government of Dubai, represented by the Department of Finance, (the â€œSelling Shareholderâ€), reserves the right to amend the size of the Offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the Securities & Commodities Authority (the â€œSCAâ€).
The Internal Sharia Supervision Committee of Emirates NBD Bank has issued a Shariah pronouncement confirming that, in its view, the Offering is compliant with Shariah principles. Admission is expected in September 2022 The share capital of the Company, as at the date of the listing (the â€œListingâ€), has been set at AED75,000,000, divided into 7,500,000,000 Shares paid-in-full, with the value of each Share being AED0.01.
Following the Offering, the Company intends to pay dividends twice, in April and October of each fiscal year. The Company expects to pay a first dividend for the second half of 2022 by April 2023, and it expects to pay 100% of the net profit, after keeping aside the statutory reserves required by law (statutory reserves expected to amount to AED37.5 million for the first dividend).