Dubai Parkin IPO to launch subscription on March 5

The parking operator is gearing up to offer 24.99% of its shares on the Dubai Financial Market. According to an advertisement prospectus that the company released on Tuesday, Parkin, a company based in Dubai, has announced plans for an initial public offering (IPO) and is preparing to offer 24.99% of its shares on the Dubai Financial Market next month.

Taking place from March 5th to March 12th, this action establishes Parkin as the pioneering firm to launch an initial public offering (IPO) in Dubai in 2024. Retail investors will have the chance to acquire 10% of the stock float, with a guaranteed minimum of 2,000 shares per investor, and the offer price range will be published on March 5, according to the prospectus.

The IPO is going to be overseen by Emirates NBD Bank. The retail tranche has a minimum application size of Dh5,000, with subsequent increments of Dh1,000; for further details, see the prospectus.

Atik Munshi, managing partner at FinExpertiza UAE, anticipates that the Parkin IPO will attract retail investors seeking to capitalize on market opportunities. Parkin, which generated revenues of Dh779.4 million and a net profit of Dh414.4 million in 2023, will become the third entity under Dubai's Road and Transport Authority (RTA), following Salik and Dubai Taxi Company.

The company manages 175,000 parking spaces across 85 locations in the city, in addition to around 4,000 spaces at nine multi-story car parks (MSCPs) and roughly 18,000 spaces at seven developer-owned facilities. The entity, established as a public joint-stock company in January, is subject to a regulation ensuring that Dubai maintains at least 60% ownership of the company when shares are sold to the public.

The IPO of the parking business follows the successful IPO of Dubai Taxi Company, which raised $330 million in November and received overwhelming demand from investors. Munshi expects Parkin's IPO to be heavily oversubscribed due to its unique position as the exclusive service provider to RTA.

Last year, the RTA raised $1 billion through an IPO of its toll-road business Salik, attracting orders totaling $50 billion, while Dubai saw nearly $8.5 billion raised from five IPOs, part of a government initiative to list 10 state-linked companies to stimulate stock market activity. IPOs in the region amassed $21.9 billion in 2023, representing over half of the total for Europe, the Middle East, and Africa, according to Dealogic data.

Read also: A new type to participate in parking lots in Sharjah

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