Dubai: RTA’s Salik to sell 20% shares in IPO

Dubai: RTA’s Salik to sell 20% shares in IPO

The road-toll operator is looking to raise around $1 billion for the shares

By Reuters Published: Mon 5 Sep 2022, 9:09 AM

Dubai road-toll operator Salik said on Monday it is selling 20 per cent of the company via an initial public offering, and targets listing by the end of September.

Salik, which was converted into a private joint stock company in June, is selling 1.5 billion shares, according to its intention-to-float document. The offer price will be confirmed on September 22 and a listing is planned around September 29, it said.

The company is looking to raise around $1 billion for the shares, implying a valuation of $5 billion, sources told Reuters.

Dubai launched its Salik electronic toll collection system in 2007 to ease congestion in the regional trading hub, which at the end of April had 3.6 million registered vehicles, of which 1.8 million were vehicles registered in Dubai.

Dubai's deputy ruler, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, had announced plans in November to turn Salik, then a division of the Roads and Transport Authority (RTA), into a public company. Listing it and nine other government-linked entities was intended to boost stock market activity.

The listing plans are aimed at making Dubai a