Parkin Sets IPO Price Range, Eyes Expansion With Dubai Financial Market Listing

By OneArabia

Published: Tuesday, March 5, 2024, 16:21 [GST]

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Parkin, Dubai's leading provider of paid parking facilities, has officially announced the commencement of its Initial Public Offering (IPO) on the Dubai Financial Market (DFM), marking a significant milestone in the company's expansion journey. The IPO is set to bolster Parkin's growth, enabling further innovation and financial performance enhancement.The price range for Parkin's shares has been established between AED2.00 and AED2.10, indicating a market capitalisation at listing of approximately AED6.00 billion to AED6.30 billion ($1.63 billion to $1.72 billion). The Dubai Investment Fund, acting as the Selling Shareholder, plans to offload 749,700,000 ordinary shares, which equates to 24.99 percent of Parkin's total issued share capital. This move could see the Offering size reach about AED1,499.40 million to AED1,574.37 million ($408.28 million to $428.69 million), with the final offer price expected to be unveiled on 14th March 2024.The subscription period for the UAE Retail Offering is slated from 5th March 2024 to 12th March 2024, while the Qualified Investor Offering will run until 13th March 2024. Notably, each First Tranche subscriber is guaranteed a minimum allocation of up to 2,000 Shares, with the final allocation determined at the subscription period's end based on total subscriber numbers and the Offer Price.

Strategic Appointments

To facilitate this IPO, Rothschild & Co Middle East Limited has been appointed as the Independent Financial Advisor. Additionally, Emirates NBD Capital, Goldman Sachs International, and HSBC Bank Middle East Limited will serve as Joint Global Coordinators and Joint Bookrunners. Other financial institutions including Abu Dhabi Commercial Bank and First Abu Dhabi Bank have also been designated as Joint Bookrunners.

Compliance and Regulatory Approvals

The completion of Parkin's IPO is contingent upon market conditions and securing necessary regulatory approvals within the UAE. This includes approval for Admission to Listing and trading on the DFM. Furthermore, Emirates NBD Bank's Internal Sharia Supervision Committee has issued a pronouncement affirming the Offering's compliance with Shariah principles.

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CEO's Vision for Growth

Mohamed Al Ali, CEO of Parkin, emphasized the company's integral role in supporting Dubai's mobility and expansion plans. "As Dubai continues to grow, our company will grow with it," he stated. The IPO represents a strategic move to accelerate Parkin's success and leverage its growth platform for further diversification.This IPO not only signifies Parkin's ambition to scale operations but also reflects the dynamic nature of Dubai's financial markets and its attractiveness to investors seeking robust investment opportunities in critical infrastructure sectors.

With inputs from WAM