Dubai Salik IPO begins at AED 2 Per Share! Learn More
N ot so long ago, marketing consumer products felt like a genteel game of lawn tennis: Established comp
On September 13, Salik, a government owned toll operating institution in Dubai, started receiving IPO subscriptions. Assuming a market capitalization of AED 15 billion, the pricing for the IPO has been fixed at an exclusive AED 2 per share.
Individual subscribers and qualifying Salik workers may subscribe between September 13 and September 20, while professional or institutional investors may sign up until September 21. The company will probably go public on September 29 on the Dubai Financial Market (DFM).
Today BIZ Banking will shed light on the topic of Dubai Salik IPO, explaining how you can make the most out of this exclusive opportunity in the UAE. So without any further ado, let’s learn!
etitors invested in creative with long lead times, using proven models of TV and big-box retail, alongside trusted agency partners. Today, it’s more like a sprawling contest of mixed martial arts, with new competitors playing by different rules; an unprecedented complexity of channels, content and partners; and a step change in speed and ways of working that has punches flying at incumbent consumer products companies.
Fueling the blur of combat is a radical shift in brand growth models. Within the span of most executives’ careers, advances in technology have reshaped how consumers engage with brands. In the US and UK, more than 60% of consumers now discover products online, and 85% of millennials trust reviews from a faceless stranger more than traditional advertising. The same technology advances have dramatically altered the competitive landscape. CMOs can no longer forecast forward their current profit pools only by looking to fill in geographies and nearby product market segments. That process risks ignoring the industry’s disruptive trends, as profit pools shift quickly from products to services to experiences and communities, and as mass products evolve into new segments with accelerating personalization. Growth strategy today requires consumer products companies to look “present forward” and “future back”—to create a faster horse while envisioning the car—in order to define new growth platforms beyond their current products, business model and capabilities.
Along with a wide array of services provided, BIZ Banking also helps with Mainland, Offshore and Business Account opening as well.
Prices set at AED 2 for Salik IPO shares!
According to a statement published on Tuesday, Salik stated that it has reached an agreement on a final per share price of AED 2, which assumes a total valuation of AED 15 billion for Dubai’s exclusive toll gate operator and an IPO of AED 3 billion ($817 million).
20% of its equity capital, or 1.5 billion shares, will be sold. Owner of the Salik Company and resident in Dubai, the Dubai government maintains the right to raise the amount of the offering at any moment before the subscription period has ended.
The Dubai Salik IPO: Why should you invest in it?
With a concession arrangement that lasts 49 years, Salik is the sole operator of Dubai’s automated road toll collecting system, which now oversees eight gates in addition to any additional gates that are constructed in the emirate.
The business model of the company is also distinguished by its low capital expenditures and cash transfer margins, which rank among the best in the sector.
Additionally, there are several prospects for the business to grow both domestically and internationally, which will help it develop its operations and activities as well as grow in size.
Every year, Salik will distribute dividends in April and October. The first dividend for the second half of 2022 will be paid by the corporation by April 2023.
From 2023 forward, the firm intends to pay a dividend equal to 100% of the net profit that is available for distribution.
Eight toll gates and three million registered vehicles exist at the moment, of which 1.8 million are registered in Dubai.
Another enticing fact is that Salik earned a revenue of AED 1.69 billion in 2021 and AED 94.9 million in the first half of 2022.
How can I invest in the Dubai Salik IPO?
Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, MBank, and Sharjah Islamic Bank are among the banks through which investors can subscribe to the IPO. Before approving their applications, they would require a National Investor Number (NIN), the completion of the necessary steps, and the specification of the amounts.
We have mentioned the procedures of some of the banks for your reference which are mentioned below
What’s the right path forward? Reinventing the brand growth model requires more than a reallocation of marketing budget to digital. CMOs need a reassessment of growth platforms and future brand portfolios, a new understanding of the consumer journey, a supporting strategy on data and technology.
The consumer journey has fundamentally changed, and so has the role of the brand manager. Once guardians of the brief to agencies, today they must lead hands-on content generation, data management.
