Dubai establishes toll provider Salik as public joint stock company, IPO forecasted

Dubai establishes toll provider Salik as public joint stock company, IPO forecasted

Dubai has issued an order establishing the toll-service provider Salik as a public joint stock company (PJSC), Emirates News Agency (WAM) reported on Wednesday, signaling strong potential for an IPO.

According to the law, the company's shares are owned by the Dubai government. These shares can be offered by subscription in a public offering or through private placement, WAM reported.

For all the latest headlines follow our Google News channel online or via the app.

However, the government would continue to hold 60 percent of the company’s capital.

“The company will have legal, financial and administrative autonomy to carry out its activities and achieve its objectives, in accordance with the provisions of the new law, the company’s articles of association and other relevant Dubai legislation,” WAM reported.

The newly established Salik Company PJSC will receive the proceeds from the toll gates, including fees and fines, WAM reported. It also gives the executive council of Dubai the capacity to add, remove and modify existing toll gates in consultation with the country’s Road and Transportation Authority (RTA).

The announcement did not specify if or when the shares will be made available through an IPO.

The company formation comes at a time when the Middle East is enjoying an unprecedented