Parkin's IPO Sets New Record With AED 1.6 Billion Raised, 165 Times Oversubscribed

Parkin Company has officially set the final offer price for its Initial Public Offering (IPO) at AED2.10 per share, leading to an anticipated gross proceeds of approximately AED1,574.37 million (c. US$428.69 million) for Dubai Investment Fund, the Selling Shareholder. This announcement confirms the Offering size of 749,700,000 shares, which translates to 24.99% of Parkin's total issued share capital. The IPO has garnered an unprecedented level of interest, with total gross demand reaching approximately AED259 billion (c. $71 billion) at the final offer price, marking a record oversubscription level of about 165 times across all tranches.

The Qualified Investor tranche witnessed exceptional global demand exceeding AED230 billion (c. $63 billion), indicating an oversubscription level of approximately 166 times at the final offer price. Meanwhile, the retail offering attracted significant attention from local investors, with demand around AED29 billion (c. $8 billion), resulting in oversubscription levels of about 153 times and nearly 63,000 applications received—a record for a DFM IPO.

Mohamed Al Ali, CEO of Parkin, expressed his enthusiasm about the overwhelming investor interest, stating, "Today represents a milestone moment for our business as we secured record-breaking investor demand for Parkin shares with overall subscriptions covered 165 times." He highlighted the company's robust business model, strong financial performance, and clear growth opportunities as key factors driving investor confidence.

As a pivotal component of Dubai's infrastructure, Parkin is strategically positioned to contribute to the city's dynamic and ambitious growth plans. The IPO is set to further enhance Parkin's ability to deliver innovative mobility solutions throughout the Emirate, supporting Dubai's privatisation programme and the expansion of the Dubai Financial Market. "I am excited to welcome our new investors to Parkin and reaffirm our commitment to delivering long-term value to all our stakeholders," Al Ali added.

Parkin is slated to commence trading on the DFM on 21st March 2024 under the symbol "PARKIN" and ISIN AEE01370P249. Upon listing, the company will boast a market capitalisation of AED6.30 billion ($1.72 billion), underscoring its significant potential for growth and value creation in the years ahead.

With inputs from WAM