UAE: Parkin expands numbers of shares allocated to retail investors in its IPO

Parkin Company PJSC has announced a significant increase in the number of shares offered in the UAE retail offer of its initial public offering (IPO). This decision comes in response to an exceptional level of oversubscription and strong demand from retail investors.

UAE Retail Offer Increases Share Allocation Due to High Demand

Following approval from the Securities and Exchange Authority (SCA), the UAE Retail Offer has been expanded from 74,970,000 ordinary shares to 89,964,000 ordinary shares.

With this adjustment, the size of the retail chain is now expected to range between approximately Dh179.93 million and Dh188.92 million, based on the previously announced price range of Dh2.00 to Dh2.10 per share. This represents an increase from the initially planned 10 percent of the offer shares to 12 percent.

The overall offering amount has not altered from 749,700,000 ordinary shares, representing 24.99 percent of the company’s total issued share capital, although the UAE Retail Offer has been increased. As a result of the reallocation of shares, the Qualified Investor Tranche will now have 659,736,000 shares, which is 88% of the Offer Shares, a decrease from the originally projected 90%.

As stated before, the subscription period for the offering will end on March 12, 2024, for UAE retail investors, and on March 13, 2024, for qualified investors. Parkin is expected to begin trading on the Dubai Financial Market (DFM) with the ticker symbol "PARKIN" and ISIN AEE01370P249 on March 21, 2024.

This announcement reflects the company's responsiveness to market demand and its commitment to ensuring broad participation in its IPO. By increasing the number of shares offered in the UAE Retail Offer, Parkin aims to accommodate the high level of interest from retail investors across the UAE.

The decision to expand the retail chain underscores the company's confidence in the strength of its IPO and the growth prospects it offers investors. With a larger allocation for retail investors, Parkin seeks to enhance the inclusivity of its offering and provide an opportunity for a wider range of investors to participate in its debut on the DFM.

Overall, the increase in the UAE retail offer demonstrates Parkin's proactive approach to capitalizing on market opportunities and its dedication to delivering value to shareholders through accessible investment opportunities in the UAE market.

Read also: UAE Announces Extended paid parking hours during Ramadan in Sharjah

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