Dubai’s Salik IPO begins tomorrow: Here is why you should subscribe

Dubai’s Salik IPO begins tomorrow: Here is why you should subscribe

Salik Company will launch its initial public offering (IPO) tomorrow (September 13). It is expected to witness strong demand from both retail and institutional investors and is likely to be oversubscribed.

Analysts say that the Dubai road toll operator’s plan to allocate all of its profits for shareholder payout will stand it in good stead and attract heavy subscriptions from local and foreign investors.

Dubai government earlier announced that it plans to sell shares in 10 public sector companies to boost the market capitalisation of the local stock market to Dh3 trillion.

Salik will be the third company after the Dubai Electricity and Water Authority (Dewa) and Tecom Group to list shares on the Dubai Financial Market. Both the previous IPOs saw strong demand and oversubscription. And Salik IPO is likely to attract a good response, too, if not better.

First in GCC?

Arun Leslie John, chief market analyst, Century Financial, expects Salik pricing is likely at Dh2.45 per share, giving it an approximate valuation of $5 billion (Dh18.35 billion).

He said Salik is a pioneer with regard to its dividend policy, perhaps in the entire GCC region. “It is the first company to offer 100 per cent of its dividends as payout and many other