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EFG Hermes closes advisory on DFM-listed Salik’s IPO

EFG Hermes closes advisory on DFM-listed Salik’s IPO
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Mubasher: Egyptian Financial Group Hermes Holding’s (EFG Hermes) investment banking division has concluded advisory as joint bookrunner on Salik Company’s initial public offering (IPO).

Salik began trading on Dubai Financial Market (DFM) on 29 September 2022 under the ticker SALIK, implying gross proceeds exceeding AED 3.70 billion and a market cap of AED 15 billion, according to a press release.

The UAE-based firm listed 1.90 billion ordinary shares, accounting for 24.90% of its share capital, at a price of AED 2 per share. The offering was oversubscribed 49 times at an amount of AED 184.20 billion.

Following the transaction, Salik will remain a state-owned company, with the Dubai government holding 75.10% of its share capital.

Mohamed Fahmi, Co-Head of EFG Hermes Investment Banking, said: “Offering a very attractive investment proposition at a time where investors are looking for quality issuances, this IPO marks Dubai’s resurgence as an important financial hub in the GCC and will hopefully sustain the positive momentum for further offerings on the DFM in 2022.”

In the first six months (6M) period which ended on 1 July 2022, Salik reported profits of AED 796.74 million, higher than AED 634.41 million in the year-ago period. Revenues also jumped to AED 944.90 million from AED 792.96 million during the same period.

Last April, EFG Hermes closed the IPO of Dubai Electricity and Water Authority (DEWA) at $6.10 billion.

During the first half (H1) of 2022, EFG Hermes logged consolidated net profits after tax worth EGP 906.80 million, a leap from EGP 754.95 million in H1-21.