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Dubai’s road-toll operator drew $50 billion in orders for its initial public offering, underscoring the high demand for Middle Eastern deals despite a worsening backdrop for the global economy.

The government sold 1.87 billion shares in Salik PJSC at 2 dirhams each, raising $1 billion, according to a statement on Thursday. The offer price implies a market capitalization of $4.1 billion for the firm, which starts trading on Sept. 29.

Middle Eastern listings have a been a bright spot in an otherwise slow market for share sales globally, as inflation fears and volatility have weighed on investors’ confidence. A surge in oil prices and investor inflows drove deals in Dubai, Abu Dhabi and Saudi Arabia at the start of 2022, and the pipeline remains busy even after a rally faded over the past few months.

Salik is Dubai’s third IPO of the year. It follows those of the city’s main utility, Dubai Electricity & Water Authority, and business park operator Tecom Group. It’s part of a government plan to boost trading volumes by listing state companies.

Investors snapped up all shares on offer in Salik hours after the IPO opened, prompting the government to boost the size of the IPO from 20% to almost 25%. Tecom’s listing was covered 21 times, while DEWA’s offer was 37 times oversubscribed. 

Dubai’s government will retain 75.1% of Salik post the IPO.

Bank of America Corp., Emirates NBD and Goldman Sachs Group Inc. are arranging the deal alongside Moelis & Co., the financial adviser for the IPO.

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