How To Buy Salik Shares – Investing In Salik

Are you interested To Buy Salik Shares, Dubai’s road-toll operator 80% Owned by UAE Govt? Well, here’s your chance! Salik is selling a 20% stake to investors, with the sale including 1.5 billion shares. From September 13 to September 20, you can subscribe to Salik shares through various banks such as Emirates NBD and Commercial Bank of Dubai.

Whether you’re a retail investor or an employee, this investment opportunity offers potential profitability. With the government of Dubai owning a majority stake in Salik, it’s also a safe choice for investors.

Where to Buy Or Subscribe Salik IPO Shares?

If you’re an existing customer of banks like Emirates NBD, ADCB, Dubai Islamic Bank, Abu Dhabi Islamic Bank, and others, participating in the Salik IPO is easy and convenient. Here’s how:

1. Online Banking or App:

• Use your bank’s online banking portal or app.

2. Salik IPO Subscription Section:

• Navigate to the Salik IPO (initial public offering) subscription section within the portal or app.

3. Follow Instructions:

• Simply follow the provided instructions step by step.

This method eliminates the need for physical paperwork or visiting a branch, saving you time and effort. It’s a user-friendly approach that allows existing bank customers to seamlessly invest in Salik at their convenience.

Eligible Banks: From where you can Buy Salik Shares?

To participate in the Salik IPO, here’s how you can do it:

Option 1: Through Eligible Banks

• Visit one of the eligible banks, such as Emirates NBD, Emirates Islamic, ADCB, ADIB, Ajman Bank, Mbank, Dubai Islamic Bank, and Sharjah Islamic Bank.

Option 2: Bank Account Holders

• If you’re an account holder at these banks, you can subscribe through:
• Internet banking
• Mobile Bank apps
• Bank ATMs

Option 3: Mashreq Bank Customers

• Existing Mashreq customers can easily join the Salik IPO by:
• Digitally submitting a Salik IPO subscription request through the app.
• Opening a brokerage account through the app.

Option 4: Mashreq NEO Account

• Even if you’re not a Mashreq customer, you can still participate by:
• Instantly opening a Mashreq NEO account through the app.

Option 5: FAB

• For FAB clients, simply visit their website or use their app to invest in Salik IPO shares.

Option 6: CBD Account Holders

• If you have an account with CBD, you can submit your interest through online banking and fulfil the requirements for opening a CBD FS brokerage account.

Option 7: Al Maryah Community Bank LLC

• If you’re a UAE resident, you can submit your subscription application via the app or internet banking with Al Maryah Community Bank LLC.

These are the straightforward ways to get involved in the Salik IPO, whether you’re an account holder or not, depending on your preferred bank.

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What does Salik mean?

The meaning of Salik: Salik means ‘open’ or ‘clear’ in Arabic and discover how it was introduced in 2007 to improve connectivity between main roads in Dubai.

Currently, Salik operates eight automatic toll gate operators across Dubai. Salik, with its simple yet meaningful name, has played a crucial role in enhancing the transportation infrastructure of Dubai. The word ‘Salik’ itself signifies openness and clarity, reflecting the purpose behind its implementation.

Introduced back in 2007, this innovative system aimed to improve connectivity between major roads by creating a seamless flow of traffic. Today, Salik’s business model continues to serve as an effective tool for managing congestion and facilitating smooth travel throughout the city. With eight toll gates strategically placed across Dubai, Salik ensures that commuters can enjoy hassle-free journeys while contributing to the overall development of the transportation network.

Salik Expansion and Modification

Dubai’s Roads and Transport Authority has the authority to add or modify toll gates based on a traffic study. This ongoing process aims to ensure efficient road connectivity in Dubai. Existing toll gates can be removed or modified with the Chairman’s decree, while new future toll gates can be added after a thorough traffic study. Strategic locations for potential toll gates include Al Barsha, Jebel Ali, Al Mamzar North, Al Mamzar South, Al Safa, Al Garhoud, DXB Airport Tunnel, and Al Maktoum Bridge.

These locations have been identified based on their significance in terms of traffic flow and connectivity. The Roads and Transport Authority aims to reduce congestion and enhance transportation efficiency in Dubai’s road network by strategically placing tolling gates at these locations.

Salik Subscription Period

Participating in the Salik share sale during the IPO subscription period is simple. Here’s what you need to know:

1. Subscription Period:

• The IPO subscription link is open from September 13 to September 20, so mark your calendars.

2. Eligible Banks:

• You can take part through various banks, including:
• Emirates NBD
• Abu Dhabi Commercial Bank
• Dubai Islamic Bank
• and more.

3. Easy Acquisition:

• This method allows both individuals and investors to easily acquire Salik shares.

4. Secure Investment:

• Investing in Salik is considered safe and profitable.
• Salik’s revenue grew by 16.1% in the first half of 2022, from Dh792.9 million to Dh944.9 million.
• Salik’s revenue grew by 9.7% year-over-year in the first half of 2023, to over AED 1.0 billion, driven by a 10.7% year-over-year increase in toll usage fees.
• Salik generated AED 346 million in EBITDA in the second quarter of 2023, which was broadly flat compared to the previous quarter, despite seasonal effects.

5. Government Stake:

• Notably, the government of Dubai will maintain the majority stake in the company, holding 80%.

So, during the subscription period, you can access these banks to submit your subscription amounts and become a shareholder in Salik. It’s a promising investment opportunity with the government’s substantial involvement in the company.

Salik Benefits and Financials

Now that you’re aware of the subscription period for Salik shares, let’s explore the benefits and financial aspects of investing in Salik.

When considering investing in Salik, there are several key points to consider:

• Safe and profitable investment: Salik has a proven track record of generating revenue and is considered a secure investment option.
• Majority stake owned by the Government of Dubai: With the government owning 80% of the stake, it provides stability and confidence in the company’s future prospects.
• Strong financial performance: In 2021, Salik reported revenues of Dh1.69 billion, and during the first half of 2022, it generated Dh944.9 million in revenue. This indicates a consistent growth trajectory.

By analyzing these benefits and financials, potential investors can make an informed decision about purchasing Salik shares.

Keep in mind that dividends will be paid out based on net profits after statutory reserves, with the aim to distribute the first dividend by April 2023.

Is Salik a Safe and Profitable Investment?

Salik offers a compelling investment opportunity, and here’s why:

1. Government Stake:

• The Government of Dubai owns a significant 80% stake in the company, providing stability and confidence for investors.

2. Strong Financials:

• In 2021, Salik reported revenues of Dh1.69 billion, and in the first half of 2022, it earned Dh944.9 million.

3. Dividends:

• Salik plans to pay its first dividend for the second half of 2022 by April 2023. Importantly, 100% of the net profit will be distributed as dividends after statutory reserves are set aside.

4. Revenue Growth:

• The company has shown impressive growth, with a 9.7% year-over-year increase in revenue in the first half of 2023, exceeding AED 1.0 billion. This growth is driven by a 10.7% year-over-year increase in toll usage fees.

5. Stable EBITDA:

• In the second quarter of 2023, Salik generated AED 346 million in EBITDA, remaining stable despite seasonal effects.

These factors point to a strong financial performance and growth potential, making Salik an attractive choice for investors seeking a secure and profitable investment opportunity.

Government Ownership in Salik

Investing in Salik offers a stable and promising opportunity, and here’s why:

1. Government Ownership:

• The Government of Dubai will hold a substantial 80% stake in the company, ensuring strong oversight and support. This level of government involvement instils confidence in your potential investment.

2. Reassurance for Investors:

• Government ownership demonstrates a commitment to Salik’s success and growth, offering reassurance to investors.

3. Profitability:

• Salik has a strong financial track record, with revenues of Dh1.69 billion reported in 2021 and Dh944.9 million in the first half of 2022.

4. Dividend Plans:

• Salik plans to pay its first dividend for the second half of 2022 by April 2023. Importantly, 100% of net profit will be distributed after meeting statutory reserves.

This information underscores the prudence of investing in Salik, as it offers stable returns with the backing of the government, making it an attractive choice for investors seeking confidence in their investments.

Dividend Payment

Investors can expect to receive their first dividend from Salik by April 2023. The company aims to distribute 100% of the net profit after meeting statutory reserves. This means that as an investor in Salik, you have the potential to earn a significant return on your investment.

Here are some key points to help you understand the dividend payment gateway process:

• Dividend Payment Timeline: The first dividend is expected to be paid for the second half of 2022 by April 2023.
• Distribution of Profits: Salik plans to distribute 100% of its net profit as dividends after fulfilling its statutory reserve requirements.

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Conclusion

In conclusion, investing in Salik shares is a safe and profitable opportunity for individuals and investors. With the government of Dubai owning a majority stake in the company, there is stability and confidence in its financials. The subscription period, which runs from September 13 to September 20, allows interested parties to participate through various banks and digital platforms.

Salik’s expansion plans and modification initiatives indicate potential growth in the future. Overall, buying Salik shares can provide long-term benefits and potential dividend payments for investors.

Frequently Asked Questions