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New toll barriers in Dubai: Salik shares gain more than 35% in 3 months and reach all-time high – News

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Published: Tuesday, January 23, 2024, 11:47 am

Salik Company shares have risen steadily over the past few months, driven by the toll operator’s expansion and the announcement of the introduction of new toll plazas.

The company’s shares reached an all-time high on January 19 following the announcement of 2 new tolls, reaching Dh3.72 per share, prompting cheers from shareholders. Its shares have risen almost 1 dirham per share, or more than 35 percent, in the last three months alone.

It gained more than 11 percent or Dh3.8 per share on Jan. 19, when the company announced two new toll gates. But short-term investors opted to take profits on Tuesday morning, sending shares down 1.4 percent in early trading.

However, the stock has risen more than 75 percent since it listed shares on the Dubai Financial Market on September 29, 2022.

Investors have found the company’s shares very attractive due to its non-capital-intensive business nature.

On January 19, Salik said the Roads and Transport Authority had tasked the company with “the installation of two new toll barriers to optimize traffic flow and reduce congestion on key routes within Dubai” at Business Bay Crossing in Al Khail Road and Al Safa South in Sheikh. Zayed Road between Al Meydan and Umm Al Sheif streets. This will bring the total number of toll plazas in Dubai to 10.

With the launch of the new gates, Salik expects to see an increase in annual revenue-generating trips.

Salik Company PJSC distributed cash dividends worth 491.4 million dirhams, or 6.5521 fils per share, in April last year. Starting in 2023, the company expects to pay 100 percent of net profit available for distribution in the form of dividends. This could increase demand for its shares.

Additionally, the company’s revenue is also expected to get a boost thanks to the agreement it signed with Emaar Malls to implement barrier-free parking for visitors. Salik’s system is expected to be operational in the third quarter of 2024.

In the third quarter of 2023, Salik reported 110.8 million revenue-generating trips and total revenue of Dh509 million. Toll revenue, accounting for 87.1 percent of total revenue, rose 14.6 percent year-on-year, the highest third-quarter performance since Salik began operating in 2007, backed by strong continued growth in tourism and residence, and Dubai remains an attractive destination for both visitors and commuters.

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