Parkin begins subscription phase for initial public offering on Dubai financial market

Parkin, the largest provider of paid parking facilities and services in Dubai, today announced the price range and start of the subscription period for its Initial Public Offering (IPO) on the Dubai Financial Market (DFM).

Mohamed Al Ali, CEO of Parkinsaying,

“We provide critical infrastructure to the Emirate with a systemic role in enabling mobility to support the city’s expansion plans. As Dubai continues to grow, our company will grow with it. The IPO will allow us to build on and accelerate our success, further driving innovation, deliver strong financial performance and leverage the potential of our growth platform to expand and diversify.

The price range of the Offer is set between AED2.00 and AED2.10 per share, with an estimated market capitalization at the time of listing ranging between AED6.00 billion and AED6.30 billion (c. $1 .63 billion to c. $1.72 billion). He Dubai Investment Fund plans to sell 24.99% of the total issued share capital of the Company, and the Fund may adjust the Offer before the end of the subscription period. Assuming full sale, the offer size is approximately AED 1,499.40 million to AED 1,574.37 million (approximately $408.28 million to approximately $428.69 million), and the final price of the Offer will be announced on March 14, 2024.

All shares are in the hands of the Dubai Investment Fund, and the Company will not receive any profit. Following the Offer, the Selling Shareholder will retain a 75.01% interest. The offering includes a retail offering in the UAE and an offering for qualified investors. Five percent of the Offer is reserved for the Emirates Investment Authority, and another five percent for the Local Military Personnel Pension and Social Security Fund.

Subscription periods are March 5-12 for the UAE Retail Offer and March 5-13 for the Qualified Investor Offer. The Offer Price will be determined through a book building process, with Rothschild & Co Middle East Limited as independent financial advisor, and Emirates NBD Capital, Goldman Sachs International and HSBC Bank Middle East Limited as joint global coordinators and joint underwriters.

The Offering is expected to be completed and admitted to trading in March 2024, subject to market conditions and regulatory approvals. The Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has confirmed the Shariah compliance of the Offer, but investors are advised to carry out their due diligence.

News source: Emirates News Agency