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Dubai's toll operator Salik has increased the offer size of its IPO to 24.9% of share capital from the 20% announced earlier due to "strong investor demand and oversubscription across all tranches."
Salik will now sell 1.87 billion shares, amounting to slightly more than $1 billion. The offering will end on September 21, with trading expected to begin on September 29.
The company said in a statement on Friday that while the tranches for qualified investors and retail investors will increase, the "cornerstone" investors’ commitments would remain unchanged at $165 million, representing 16.2% of the new offer size.
The Government of Dubai will continue to own 75.1% of Salik’s existing share capital, it added.
The first and third tranches (for retail investors) will increase from 120,000,000 to 145,725,000 ordinary shares, or approximately 7.8% of the offer size. The second tranche (for qualified investors) will increase from 1,380,000,000 to 1,721,775,000 ordinary shares, or approximately 92.2% of the offer size, the statement said.
Salik, which was converted into a public joint stock company in June, earlier this week set the share price for the IPO at AED 2 per share.
The company is expected to begin trading on the Dubai Financial Market on September 29. Its starting market capitalisation is expected to be AED 15 billion.
(Reporting by Brinda Darasha; editing by Seban Scaria)
