Make Kitco Your Homepage

Banks invited to pitch for IPO of Dubai road-toll operator Salik -sources

Kitco News

DUBAI, Jan 17 (Reuters) - Dubai's Road and Transport Authority (RTA) sent a request to banks to pitch for top roles in the upcoming initial public offering of road-toll operator Salik, two sources told Reuters.

Investment banks began to receive invitations to pitch for joint global coordinator roles in the planned public share sale, said the sources familiar with the matter, declining to be named because the information was private.

The RTA and Salik did not immediately respond to a Reuters request for a comment.

The RTA has appointed Moelis & Co as financial adviser on the deal. The U.S. bank is also acting as financial adviser on the public share sale of Dubai Electricity & Water Authority. read more Moelis declined to comment.

Dubai's deputy ruler, Sheikh Maktoum Bin Mohammed, in November announced plans to take Salik public amid plans to boost stock market activity by listing 10 government-linked companies. read more

The listing plans are aimed at making Dubai a more competitive market, with bigger bourses in Saudi Arabia and neighbouring Abu Dhabi that are attracting larger listings and strong liquidity.

The Salik road toll system was launched in 2007 by the Roads and Transport Authority to ease traffic congestion on the Sheikh Zayed highway and shore up state revenues.

Salik has eight toll gates and 3 million registered vehicles, out of which 1.8 million are registered in Dubai, according to the Dubai Media office.

Reporting by Hadeel Al Sayegh and Saeed Azhar, editing by Louise Heavens
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.