The Dubai government is seeking to raise about $1 billion by selling shares of road toll operator Salik as soon as next month.
Salik reportedly received a $1.1 billion loan from Emirates NBD to pay a special dividend to the government.
Salik is said to have taken out a $1.1 billion loan from Emirates NBD to pay a special dividend to the government, unnamed sources told Bloomberg, adding other IPO candidates in Dubai took out similar loans.
The toll operator aims to stage the listing in September. The Dubai government earlier said it will retain a minimum 60 percent stake in Salik.
Salik is one of the 10 proposed privatisations in Dubai as part of its plans to bolster its capital market.
The move builds on Dubai’s IPO momentum – with the most recent listings of supermarket chain Union Coop and real estate giant TECOM Group.
Several companies across various industries in the UAE have been in talks of IPOs.
TECOM Group debuted on the Dubai Financial Market (DFM) on July 5, this year, after it raised over $462 million through it’s initial public offering in June.
Burjeel Holdings, a notable healthcare provider in the UAE, also announced its plans of raising $750 million through a potential IPO in Abu Dhabi.
The healthcare provider is said to have appointed JP Morgan, Emirates NBD, EFG-Hermes and Islamic Bank of Dubai as coordinators for the listing, CNBC reported.
UAE-based currency exchange giant Al Ansari Exchange is reportedly considering an IPO in Dubai next year.
