DUBAI: Dubai plans to sell a 20 percent stake in toll operator Salik through an initial public offering as part of its efforts to double the size of its financial market and attract foreign investors. The emirate seeks to offer 1.5 billion shares at a nominal value of AED0.01 in the road-toll collection system, Salik announced on Monday. Subscriptions will open on Sept. 13 and end on Sept. 20 for retail investors and on Sept. 21 for qualified investors. The company is likely to list on the Dubai Financial Market on Sept. 29. The toll service was introduced in 2007. Around 60 percent of Dubai commuters use private cars, with net toll traffic totaling 209 million during the first half of 2022. Following a record-breaking first half for Gulf IPO proceeds, Salik’s IPO will challenge investors’ demand for the UAE equity markets. Mattar Al-Tayer, chairman of Salik’s board of directors, said the deal is part of a broader plan to list 10 state-owned companies to boost the country’s financial market and double it to 3 trillion dirhams ($816.7 billion). “The company is in a prime position to benefit from additional growth opportunities and is designed to ensure efficient operations. It is underpinned by an effective regulatory framework that supports future growth, and a business model that requires low capital expenditures,” Al-Tayer said. Dubai, represented by the Department of Finance, can alter the size of the offering before the end of the subscription period. However, such a change is subject to the approval of the Securities and Commodities Authority. Dividends will be paid twice a year, in April and October, Salik CEO Ibrahim Al-Haddad said, adding he believes the yields will attract the right investment and strategic partners. Offering distribution Individual subscribers make up the first tranche as part of the offering, whereas professional investors comprise the second tranche, and eligible employees constitute the third. In the qualified investors offering, 5 percent will be reserved for the Emirates Investment Authority and 5 percent will go to the Local Military Pensions and Social Security. Global coordinators to Salik are Emirates NBD Capital, Goldman Sachs, and Merrill Lynch, and the joint book runners on the offering are Citigroup Global Markets Ltd., EFG Hermes UAE Ltd., and HSBC Bank Middle East Ltd.. Moelis & Co. is acting as an independent financial adviser.