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Dubai: Parkin IPO price range set at Dh2-2.10 per share; high interest from investors on day 1

The company aims to raise Dh1.57 billion through IPO

Published: Tue 5 Mar 2024, 8:24 AM

Updated: Tue 5 Mar 2024, 10:32 PM

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Dubai-based company Parkin Co. on Tuesday set the price of Dh2 to Dh2.10 per share for the initial public offering (IPO) to raise Dh1.57 billion.

This places the company’s market capitalisation at Dh6 billion to Dh6.30 billion at listing on the Dubai Financial Market.

Parkin Company, which will be the largest provider of paid parking facilities and services in Dubai, is the first company to launch an IPO in 2024 in the UAE. It currently operates approximately 197,000 paid parking spaces at strategic locations across the emirate.

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The first day saw strong interest from the Sharjah-compliant company’s shares and is expected to witness massive oversubscriptions like the Dubai Taxi IPO, which was oversubscribed 135 times.

Daniel Takieddine, chief executive officer for Mena at BDSwiss, said the subscription has seen high levels of interest from investors who have subscribed en masse as soon as the operation started.

“Parkin could thus record significant levels of oversubscription similar to those seen for Dubai Taxi. Investors continue to show a big appetite for companies in the UAE and the region thanks to their strong growth prospects and the solid economic fundamentals in the region. Parkin is also expecting strong growth in its revenues as demand for parking continues to increase in Dubai as its economic activity and population expand,” Takieddine told Khaleej Times.

He added that the strong demand for IPOs in the region and the success of previous ones have created favourable conditions for Parkin.

“The IPO will enable us to build on and accelerate our success. We are pleased to have received strong interest from investors following our intention to float on the DFM,” said Mohamed Al Ali, CEO of Parkin.

The IPO subscription period for the offering started on Tuesday and will close on March 12 for UAE retail investors and on March 13 for qualified investors.

The final offer price per share will be determined through a book-building process and is expected to be announced on March 14. The company is expected to list on Dubai Bourse on March 21.

Each subscriber in the First Tranche will be guaranteed a minimum allocation of up to 2,000 shares, subject to the total number of shares allocated pursuant to the minimum guaranteed allocation in the First Tranche not exceeding the total number of shares available in the First Tranche, and could therefore be lower than 2,000 shares.

The Dubai Investment Fund, which is selling the shares, said it reserves the right to amend the size of the offering at any time prior to the end of the subscription period.

Five per cent of the shares will be reserved for the Emirates Investment Authority and the same percentage for the Pensions and Social Security Fund of Local Military Personnel.

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