Dubai: Salik IPO expected to see a strong response

Dubai: Salik IPO expected to see a strong response

Firms like Dubai Electricity and Water Authority (Dewa) and Salik are high-quality government utility companies with a steady stream of revenues, thus enabling the exchange to attract investments from international investors

Salik has 'grown by leaps and bounds' during the past two decades. — Supplied photo

Published: Mon 5 Sep 2022, 7:07 PM

Dubai toll operator Salik’s initial public offering (IPO) is expected to see a strong response and shareholders will enjoy steady dividends, says an analyst.

“Firms like Dubai Electricity and Water Authority (Dewa) and Salik are high-quality government utility companies with a steady stream of revenues, thus enabling the exchange to attract investments from international investors. Moreover, in the current uncertain global macro-environment, Salik kind of companies could get the attention of income investors looking for less aggressive bets,” said Vijay Valecha, Chief Investment Officer, Century Financial.

Salik will sell 1.5 billion shares or 20 per cent of the stake through IPO this month and list shares on the Dubai Financial Market. This will be the third public offering by the public entity. In April, the Dubai Electricity and Water Authority (Dewa) was the first public entity to raise $6.1 billion in its IPO. In June, business park operator Tecom raised Dh1.7 billion