Sunday, October 1

Dubai’s RTA hires investment banks for road-toll Salik IPO – sources

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DUBAI — Dubai’s Roads And Transport Authority (RTA) has picked banks to arrange the listing of road-toll operator Salik, two sources told Reuters.

The RTA has chosen Bank of America’s securities arm, EmiratesNBD and Goldman Sachs to advise on the initial public offering, said the sources, declining to be named as the matter is not public.

Dubai’s RTA did not immediately respond to a Reuters request for comment.

Bank of America, Emirates NBD and Goldman Sachs declined to comment.

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

The Salik road toll system was launched in 2007 by the RTA 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.

Dubai Electricity & Water Authority (DEWA) is expected to launch its initial public offering next month, with a listing on the Dubai Financial Market likely to be in April, Reuters reported on Feb. 22, citing sources. (Reporting by Hadeel Al Sayegh and Saeed Azhar; Editing by Jan Harvey, Ed Osmond and Jonathan Oatis)