- The much-anticipated IPO of one of Dubai’s most attractive infrastructure projects is expected to raise over AED3.7 billion (US$1.0 billion), marking another flagship issue on the ever-expanding Dubai Financial Market (DFM) and a hugely successful monetization event by the represents Government of Dubai
Dubai: EFG Hermes, the leading franchise investment bank in Frontier Emerging Markets (FEM), announced today that its Investment Banking Division has successfully completed acting as Joint Bookrunner on the initial public offering (IPO) of Dubai’s exclusive toll booth operator – Salik. on the Dubai Financial Market (DFM).
At the IPO, Salik offered 1.9 billion common shares, representing 24.9% of its share capital, at a price of AED2.00 per share for total gross proceeds of over AED3.7 billion (US$1.0 billion).[1]) and a market capitalization of AED15.0 billion (US$4.1 billion1). EFG Hermes acted as joint bookrunner on the transaction within the consortium of banks advising the issuer and the selling shareholder. Salik is trading today under the ticker SALIK. After the transaction, Salik will remain a state-owned company with the Government of Dubai owning 75.1% of the company’s share capital.
Commenting on the transaction, Mohamed Fahmi, Co-Head of Investment Banking at EFG Hermes, said: “We are incredibly proud to have been part of this landmark transaction, which has had a great response across all its tranches and from investors around the world. Despite a turbulent global economic environment, the UAE continues to be an attractive investment hub, particularly in the ECM space. It continues to offer investors a dollar-denominated safe haven with very attractive long-term fundamentals, while the DFM continues to offer issuers and investors a healthy place to create value in the public markets, and Salik’s IPO is a testament to the market’s attractiveness for a wide range of investors. The offering gives investors access to a world-class, capital-efficient toll booth operator with a solid track record in one of the world’s fastest growing cities. This IPO offers a very attractive investment proposition at a time when investors are looking for quality issues and marks Dubai’s resurgence as a key financial hub in the GCC and will hopefully maintain the positive momentum for further offerings at the DFM in 2022.”
The offering attracted significant local and international interest, reflecting significant investor confidence in Salik’s business model and Dubai’s long-term prospects. Total gross demand across all tranches of the offering was over AED184.2 billion (US$50.2 billion1) – an oversubscription of approximately 49x.
EFG Hermes continues to maintain its leading position in the market with its unmatched execution capabilities, advising on the largest and most significant ECM, DCM and M&A transactions in the region. In 2022 and on the ECM front, the firm’s investment banking arm advised on the $6.1 billion Dubai Electricity and Water Authority (DEWA) IPO – the largest listing in the Middle East since 2019. EFG Hermes also acted as joint bookrunner, the $2 billion IPO of Abu Dhabi-based petrochemical company Borouge, the largest listing to date on the Abu Dhabi Stock Exchange (ADX). The division also completed advice on the USD 323 million private placement of 45% of Ali Alghanim and Sons Automotive Company ahead of its offering on the Boursa Kuwait, which marked the first public offering on the Kuwait stock exchange since 2020.
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About EFG Hermes Keep
With a current presence in 14 countries on four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has successfully grown over 38 years to transform from a pure investment bank in MENA to an impact-driven universal bank in Egypt with the leading investment bank franchises in Frontier Emerging Markets (FEM). Based on our proven track record and a diverse team of talented people, we offer a wide range of financial services across the FEM region, spanning advisory, asset management, securities brokerage, research and private equity. In our home country, we have the fastest growing platform for non-bank financial institutions (NBFI) with operations in microfinance, leasing, factoring, buy-now pay-later (BNPL), digital payment solutions, mortgage finance and insurance.
And with the recent acquisition of a majority stake in aiBANK, the company was able to offer commercial banking products and services.
Through its three verticals of Investment Bank, Non-Bank Financial Institutions (NBFI) and Commercial Bank, the group is perfectly positioned to consistently bring disruptive financial products and services to market and offer a holistic portfolio that best serves its growing retail client base and companies of all sizes.
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Cautionary Note Regarding Forward-Looking Statements
In this press release, EFG Hermes Holding may make forward-looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts, instead merely representing EFG Hermes Holding’s belief with respect to future events, many of which are inherently uncertain and beyond management’s control and include, among other things, volatility in financial markets; actions and initiatives of current and potential competitors; general economic conditions and the effects of current, upcoming and future laws, regulations and governmental actions. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.
[1] The AED/USD exchange rate has been stable at AED 3.6725 per USD 1 since 1997. All AED/USD conversions mentioned in this press release have been calculated at this rate
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