Parkin could raise up to $430m in Dubai IPO as investors show ‘strong interest’

Parkin, the company set up by Dubai to oversee parking operations, could raise as much as Dh1.57 billion ($428 million) from its initial public offering on the Dubai Financial Market.

The price range for the IPO has been set between Dh2 and Dh2.10 per share, implying a market capitalisation at listing of between Dh6 billion to Dh6.30 billion, the company said yesterday.

The Dubai Investment Fund expects to sell 749.7 million ordinary shares, representing 24.99 per cent of the total issued share capital of the company. The subscription period for retail investors runs from March 5 to March 12, while for institutional investors, it ends on March 13.

The final offer price is expected to be announced on March 14, with the company planning to start trading a week later, on March 21.

“As Dubai continues to grow, our company will grow with it. The IPO will enable us to build on and accelerate our success,” said Mohamed Al Ali, chief executive of Parkin.

The company has received “strong interest from investors following our intention to float on the DFM”, he said.

Parkin is the largest provider of paid parking spaces and services in Dubai, accounting for more than 90 per cent of the emirate’s on and off-street paid parking market.

It manages about 175,000 on and off-street parking spaces across 85 locations, and close to 18,000 spaces across seven developer-owned parking lots.

The company is also responsible for issuing permits to drivers, allowing them to subscribe to public parking, use and operate it, and reserve parking spaces.

It is also in charge of establishing, designing and managing private parking spaces, as well as investing in related business activities.

Parkin’s revenue for the financial year that ended on December

31 rose 13.5 per cent annually to Dh779.4 million.

The company’s profit before interest, taxes, depreciation and amortisation increased by 23 per cent during the period to Dh414.4 million.

The company’s IPO comes after Dubai announced plans in November 2021 to list 10 stateowned companies, aiming to expand the size of its financial market to Dh3 trillion.

It also established a Dh2 billion marketmaker fund to encourage listings from private companies in sectors such as energy, logistics, and retail.

Five state-owned enterprises have been listed on the DFM since 2022.

The listing of Dubai Electricity and Water Authority, popularly known as Dewa, was the largest Gulf IPO in 2022, raising $6.1 billion.

The IPO price range is between Dh2 and Dh2.10 per share, implying a market capitalisation of Dh6bn-Dh6.3bn