Parkin IPO

Dubai-based parking space operator, Parkin, is gearing up for a significant milestone as it plans to launch its initial public offering (IPO), aiming to float 24.99% or 749.7 million shares on the Dubai Financial Market next month. The announcement comes via a tweet from the Dubai Media Office, setting the stage for the first IPO in Dubai for 2024.

Subscription Details and Investor Offerings

Subscriptions for the IPO are scheduled to open on March 5 and will run until March 12 for retail investors, with institutional investors having until March 13. The IPO includes a qualified investor offering, with reserved percentages for the Emirates Investment Authority and the Pensions and Social Security Fund of Local Military Personnel.

Price Discovery and Listing Plans

The offer price range is set to be unveiled on March 5, while the final offer price will be determined on March 14. Parkin aims to officially list on March 21, marking a crucial step in its financial journey.

Retail Investor Opportunities

Retail investors are offered a unique opportunity, with a guaranteed chance to acquire 10% of the stock float. The lead receiving bank for the IPO is Emirates NBD Bank, and the prospectus outlines a minimum application size of Dh5,000, with subsequent increments of Dh1,000.

Leadership Perspectives and Growth Vision

Parkin’s Chairman, Ahmed Hashem Bahrozyan, expresses confidence in the company’s future opportunities, emphasizing its role in supporting Dubai’s growth. CEO Mohamed Al Ali echoes these sentiments, highlighting the commitment to driving growth and contributing to the city’s ambitious plans.

Market Anticipation and Industry Impact

Atik Munshi, managing partner at FinExpertiza UAE, anticipates strong interest from retail investors, citing the persistent demand for parking spaces in Dubai’s commercial and business areas. Parkin, operating 197,000 parking spaces across 85 locations, closed 2023 with revenues of Dh779.4 million and a net profit of Dh414.4 million.

Dividend Plans and Financial Outlook

Following the IPO, Parkin plans to pay a semi-annual dividend in April and October, with the minimum payout for 2024 exceeding the net profit for the year, according to CFO Khattab Abu Qaoud.

IPO Successes and Dubai’s Privatization Drive

The IPO follows the success of Dubai Taxi Company’s IPO, oversubscribed 130 times in November 2023. Parkin, as the exclusive service provider to the Road and Transport Authority (RTA), is expected to benefit from near-zero competition. The upcoming Parkin IPO is anticipated to contribute to Dubai’s continued efforts in privatization, with the government aiming to list 10 state-linked companies to boost stock market activity. In 2023, Dubai raised nearly $8.5 billion from five IPOs, making it a significant player in the IPO market within the Europe, Middle East, and Africa region.

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