Dubai is seeking to raise about $1 billion by selling shares in the city’s road-toll collection system as soon as next month, Bloomberg reported.
Prior to the offering, Salik obtained a $1.1 billion loan from Emirates NBD to pay the government exceptional dividends.
According to Bloomberg, citing people familiar with the matter, Salik is still planning to list its shares on the Dubai Stock Exchange in September.
Salik is among 10 government proposals announced by Dubai to stimulate the stock market.
Sheikh Mohammed bin Rashid, the Ruler of Dubai, issued a law in June establishing Salik as a public joint stock company. The law requires the Government of Dubai to own all of Salik’s shares. In the event that Salik’s shares are offered for subscription, the Dubai government’s stake in the company cannot be less than 60 percent.
