Salik shareholders approve $134m dividend

Shareholders in Salik have approved a total dividend of $134m (Dhs491m), which translate to 6.55 fils per share, for the second half of 2022.

The shareholders’ approval to distribute cash dividends of Dhs491m, which represents 100 per cent of Dubai toll operator’s net profit for the second half of 2022, after deducting a one-time statutory reserve of Dhs37.5m is in line with the company’s dividend policy.

“Our solid performance in 2022 is a testament to the trust that our shareholders and the wider business community have in our company as well as Dubai’s commitment to ongoing growth as part of its overarching development strategies,” Mattar Al Tayer, chairman of Salik said at the company’s first annual general meeting as a publicly listed entity.

The company’s full-year revenue jumped by 11.8 per cent to $517m (Dhs1.9bn), supported by an increase in revenue from toll usage fees “which was driven by positive seasonality effects as well as organic growth in the number of trips.”

Read: Dubai’s Salik posts 11.8 per cent surge in full-year revenue

The road-toll operator said the number of revenue-generating trips also increased by 13 per cent to 413 million trips compared to 367 million in 2021, driven by continued recovery from the pandemic as restrictions were fully lifted in Dubai.

It also attributed the increase in revenue-generating trips to positive growth activity and an increase in traffic in Dubai. Salik said toll usage fees reached Dhs1.7bn last year from Dhs1.5bn a year earlier.

Salik Company PJSC’s shareholders approved today, during its first Annual General Meeting as a public listed company, the Board of Directors’ proposal to distribute cash dividends of AED 491,407,500 (6.5521 fils per share).

— Salik (@Salik_ae) April 6, 2023

Salik reported a 7 per cent year-on-year increase in the number of vehicles registered with Salik to 3.7 million by the end of December 2022 against 3.5 million for the same period a year earlier, reflecting Dubai’s ongoing efforts to attract tourists and talent.

The company projected that the number of revenue-generating trips through its eight toll gates will fully recover in 2023, driven by the strong trajectory in the number of trips made through its gates and traffic levels broadly recovering to pre-pandemic levels.

The state-owned firm has played a pivotal role in managing traffic in Dubai for 15 years and remains an integral part of the city’s expansion plans in the road and transport sector in support of its economy.

Salik IPO

Meanwhile, Salik soared in its trading debut on the Dubai Financial Market after its initial public offering (IPO) drew Dhs184bn in orders.

“2022 marked a new chapter in Salik’s journey, and we are pleased to play a central role in Dubai’s ambitious IPO programme, including the momentous listing of Salik in September 2022,” said Al Tayer.

The Dubai government sold 1.87 billion shares at Dhs2 apiece, equivalent to 24.9 per cent of Salik’s paid-up capital, raising Dhs3.73bn and giving the company a market capitalisation of Dhs15bn. The government retained a 75.1 per cent stake after the IPO.

Read: Dubai’s Salik soars in trading debut after huge IPO order book

Salik, which means open in Arabic, is an automated system that was introduced in 2007. Each time a vehicle passes through one of the city’s eight toll gates Dhs4 is charged to a prepaid account, a highly efficient system that removes the need for cash or toll booths.

The company is one of the state-linked entities to execute a Dubai listing successfully last year in a programme that is aimed at boosting trading volumes to Dhs3tn and attracting foreign investor interest in the domestic stock exchange.

The Deputy Ruler of Dubai Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum said in November 2021 that his government approved the establishment of a market-maker fund worth up to Dhs2bn and a Dhs1bn fund to encourage domestic listings.